|Subject||Literature and Languages|
|Writer level||High School|
|Sources / references||3|
|Description / paper instructions
write a 5 paragraph essay on
1) Coming of Age:
This is based on the novel The Help.
The rubric is in the attachments
|Sources / references||10|
|Description / paper instructions
Project – Portfolio Construction and Management
Abu Dhabi Investment Authority – ADIA, Abu Dhabi, UAEAbu Dhabi Investment Authority (ADIA) is one of the largest sovereign wealth funds in the world. As of today, ADIA has US$ 1.329 trillion in assets which is almost 400% more than the gross domestic product (GDP) of the UAE. ADIA is one of the main pillars of the UAE government’s aim to diversify away from oil revenues in future development strategies.
2. A 1-2 page analysis of investment category selection. For your portfolio, you should pick a minimum of 3 investment categories ( air line , commoditiy and auto industries). There is no maximum limit. You have to provide a cogent rationale for your selection of investment categories. This should be presented as Exhibit A. Asset class selection and allocating funds to selected asset classes is the most important aspect of portfolio creation. As such pay substantial due diligence on this task. Your write up should present your rationale for your investment asset classes in terms of return/risk/social-cultural values. Present your logic for your selection of asset classes. (10%)
3. Within each investment category, you should pick a minimum of two individual investments. For each individual investment, you should provide a 1-2 page analysis (introduce the investment, brief history, how the investment has done in the recent past, what is your rationale for picking this investment and what do you think will happen in the future … etc. You should back up your analysis with industry research. (10%)
4. Assume that you created the portfolio one year ago (March 2017). Research real data and calculate the holding period return for each investment. Show your work. (10%)
5. Pick two of the listed stocks from your portfolio. Calculate portfolio standard deviation (portfolio sigma) for the two stocks assuming equal weightage and that the correlation coefficient is -0.8. Show your work. (10%)
6. Calculate the portfolio holding period return assuming you created the portfolio one year back (March 2017). Pay attention to portfolio weightage for each investment. (5%)
7. Calculate Sharpe Ratio using information calculated in task 6 and assuming portfolio risk to be 10%. (5%)
8. Calculate Treynor Ratio using information calculated in task 6 and assuming beta 0.9 (5%)
9. Do excess return -Jensen analysis using given graph. Explain thoroughly your portfolio performance based on the given graph (make assumption from task 8). (5%)
10. Provide a 2-3 page global investment climate analysis, especially considering the UAE, ADIA and the Middle East region viz global economy. (20%)
1. Executive Summary: You should be doing this as the last step of the process. This should be a 2-3 page document with word count between 600 to 1000 words. This is NOT a document to rehash all the material in your supporting attachments (appendices) but a professional document addressed to the governing body of ADIA on your investment logic on why you chose you asset classes and within the asset classes, the rationale of the selection of individual stocks. This is a document (in reality a marketing document) to convince the governing body that you have performed your fiduciary duties in terms of due diligence … etc. The document should also convince the governing body to give you future business. We will do a teaching module on how to write a good/professional executive summary. It is very important that this document is professional and adheres to industry ‘best practices’. As such, it would be in your best interest to research how to a good executive summary as early as possible although this step would be the final step of the ADIA project.
2. Exhibit 1: Choosing your asset classes is an important part of the process. As discussed in class, selection of asset classes is the most important part of the portfolio creation process viz individual investment selection. You should spend some time in this process and critically evaluate why you are selecting a given asset class. The heading of the exhibit could be “Asset Classes.” In the first paragraph, you should enumerate the asset classes. Then in subsequent paragraphs, give your rationale for selecting each asset class. The last paragraph could include your rationale for NOT selecting some of the possible asset classes. Exhibits have no word count or page limit. For a listing of asset classes, check your week 1 notes. This step of the project could be done right away.
3. Exhibit 2: Once you have decided on asset classes, you need to pick individual investments within each asset class. Include 1-2 page information sheet on each investment—such as a brief background information of the company/investment, performance (3 months, 1year, 5 years), growth possibilities (you could get this from analyst reports). Here, you could do lot of cut and paste of information as long as the information is relevant. You could include graphs … etc. to convey investment performance. You could also include a brief description of the industry and industry performance. On each information sheet for individual investments, include on paragraph on your investment rationale.
4. Exhibit 3: For each investment, assume that you invested one year ago. Find real data for March 2017 (approximate prices … etc.). Using past data and current market prices and any other auxiliary cash flows as dividends … etc., calculate the holding period return (for 1 year). In the first paragraph state the return and then in subsequent paragraphs, provide the calculation data (you could do this as a table).
5. Exhibit 4: Pick two listed stocks from the portfolio and calculate portfolio risk for the two stock portfolio assuming the given correlation coefficient. Show work.
6. Exhibit 5: Here, calculate individual returns and multiply by weightage.
7. Exhibit 6: Sharp Ratio.
8. Exhibit 7: Treynor Ratio.
9. Exhibit 8: Jensen Number.
10. Exhibit 9: This is your opportunity show off your knowledge gained from all your prior courses in finance and economics. The analysis should be on global investment climate from a local (UAE) point of view. You could find analyst reports.