Financial market question
BCO224 FINANCIAL MARKETS Task & rubrics TASK BRIEF
• The assignment consists of 2 questions • Concepts included are in UNIT 5 Mutual Fund Industry • The assignment will be accepted in WORD format ONLY. It is mandatory to submit an EXCEL file where you explain the different calculations you made. So,
both files have to be submitted. • Calculation results HAVE TO be explained and the calculation steps explained
This task is worth 20% of your overall grade for this subject.
It assesses the following learning outcomes:
• Demonstrate a deep understanding of the role of financial markets and financial institutions • Understand the primary classes of mutual funds available to investors and the benefits of different investment funds • Understanding NAV calculations
LAUNCH: WEEK 9 / DELIVERY: APRIL 24TH, 2020, 23:59HRS ON MOODLE
Submission file format: Word Document with all the answers plus the EXCEL file used to perform your calculations
ASSIGNMENT
1. Assume you are an investment advisor. Your client is unsure what are the main benefits and reasons for investing in a Mutual Fund or an ETFs
a. Explain the main differences and similarities between each other b. Explain what are the main advantage and disadvantage of investing in mutual funds or ETFs c. Explain the main difference between active and passive management
2. Go to https://www.morningstar.com a. What information does provide the Morningstar Style Box®? b. Morningstar assigns a Rating to each Mutual Fund. What are the criteria they use to assign this rating? c. Use the information provided above (style box and ratings) to choose 5 different mutual funds/ETFs (5 funds/ETFs per each
portfolio) to prepare 3 portfolios for 3 different types of investors: i. Aggressive ii. Moderate iii. Conservative
d. In half a page for each portfolio, explain: i. The rationale behind choosing the given funds/ETFs per each portfolio ii. The criteria chosen to build each portfolio
e. Follow up the prices for all 3 portfolios for a week. Calculate the return for each portfolio at the end of the week. Explain your results.
Rubrics
Exceptional
90-100
Good
80-89
Fair
70-79
Fail
<70
Understanding
(30%)
Student selects all key concepts, demonstrating an excellent understanding of the reading material and task.
Student selects some key concepts, demonstrating a good understanding of the reading material and task.
Student selects a few key concepts, demonstrating a fair understanding of the reading material and task although some concepts might be missing.
Student fails to select key concepts, demonstrating insufficient understanding of the reading material or task.
Calculation
(20%)
Student demonstrates excellent ability to calculate and understand all key formulas & exercises.
Student demonstrates good ability to calculate and understand all key formulas & exercises.
Student demonstrates fair ability to calculate and understand all key formulas & exercises.
Student demonstrates insufficient ability to calculate and understand all key formulas & exercises.
Analysis
(40%)
Student demonstrates an excellent ability to interpret statistics and the calculation results, as well as a highly critic approach
Student demonstrates an good ability to interpret statistics and the calculation results, as well as a good critic approach
Student demonstrates an fair ability to interpret statistics and the calculation results, as well as a fair critic approach
Student demonstrates an insufficient ability to interpret statistics and the calculation results, as well as a insufficient critic approach
Communication
(10%)
Student communicates their ideas extremely clearly and concisely, in writing and orally.
Student communicates their ideas clearly and concisely, in writing and in public.
Student communicates their ideas with some clarity and concision, in writing and to some extent, in public.
Student fails to communicate their ideas clearly and concisely, in writing and/ or in public.