Investment Management: Optimize The Returns On Investments

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1)Please be kind to read below my personal requirement for the essay :
– This essay must be NO less than 2200 words
-Please write the essay in a very simple and direct way , so when I will receive it I can understand its content , and if needed I can do some edit. If the assignment is too technical or complex, I cannot understand it and I cannot edit it, as I am not an expert in the field.
-Please make the assignment also argumentative , do not just write symbols or calculation, try to explain also in simple words the meaning of 5 the assets class and the meaning of the other asked questions.
– Please design the portfolio in a very basic and simple way so I can understand it , but please do not just write numbers and symbol, but be kind to argument the portfolio and calculation and explain them, so I can understand what you wrote into the portfolio and what you meant by that.
– Please do not use High Technical language otherwise that can make someone suspicious, but please use simple language to describe the topics.
-Please provide my assessment in WORD document and NOT IN PDF.
-Please use reliable references which I can put into the essay and for which I will not be marked down. You can use also a company website, or a reliable and famous financial website as reference, that will make my life easier when I ll need to edit it. ( If you’ll put academic references from book, and you do not write then in the way my College wants , then I ll have to edit it, but it will be hard to edit it as I ll probably will not have all information to reference the way they want), so please use company website or financial official website, so I can easily access to them and check them.
-Please write the assignment in the following structure and in the following order : 1) Introduction 2)Body 3) Conclusion 4) References List
– Please be aware that my university portal uses Turnitin for detecting plagiarism so please be very careful when writing things which comes from other sources , as Turnitin will immediately detect them and if it will find some similarity they will make me fail the assignment immediately. That’s why I would like the assignment to be quite personal and argumentative.
– Please always use third person for the assignment and never write in the first person.
-Kindly note that the assignment question are based on an attachment which I m sending you called ( Appendix1) and this attachment contains data from table 1 , 2, 3 and 4 .
2 ) Now that you have my personal requirements for the assignment , I will write below the assessment question :
-Write a report which addresses all of the following questions (a to f). Where relevant, base your analysis on the data provided (see Appendix 1). Please make any assumptions clear if used to clarify any issues.
A )Briefly discuss the five asset classes in Table 1. Using the data from Table 1, calculate the Arithmetic Mean (AM), Geometric Mean (GM) and Standard Deviation (σ) of returns of each of the five asset classes. Briefly discuss the risk-return characteristics of each asset class with reference to these measures.
B)Construct an efficient portfolio. As
sume the risk-free rate over the period is 4.45%. Calculate the Efficient Frontier and Capital Allocation Line (CAL) for the five asset classes using the Excel Solver Tool . You will also need to calculate and provide the ‘Bordered Covariance’ and ‘Correlation Matrices’. Discuss the implications of these five assets on efficient frontier and CAL
C) Economic indicators are often used to predict the business cycle. Provide an outlook for the economy based on data showing that the index of consumer expectations has risen and the initial claims for unemployment insurance has fallen. Discuss the consequences of that from a portfolio management perspective, elaborating on the choice of assets from cyclical and defensive industries.
D) Using the Black-Scholes formula and the cumulative normal distribution , compute the call and put option prices using the data from Table 2.
E) Assume the current futures price for platinum for delivery 10 days from 23 March is AUD$1,260.49 per ounce. Suppose that from 24 March 2017 to 6 April 2017 the platinum prices were as in Table 3. Assume one futures contract consists of 100 ounces of platinum. Also, assume the maintenance margin is 5% and the initial margin is 10%. Calculate the daily mark-to-market settlements for each contract held by the short position. Briefly discuss basis risk (you can give an example if it makes it easier to discuss).
F) Evaluate a fund’s portfolio performance in terms of the market (e.g. outperformance or underperformance) using the Sharpe ratio, Treynor measure, Jensen’s alpha and the Information ratio using data from Table 4. Assume the risk-free rate is 4.45%. Briefly discuss each of the four measures plus the Morningstar risk-adjusted return model
Dear Writer,
-Please find attached the Appendix 1 which contains table 1, 2 , 3 and 4 which are useful for the assignment question.
-Kindly note that the assignment asks you to use the excel tool at some point ( part b of questions) , but please keep in mind that i need the document in word, so you do not need necessarely to use that excel tool , as long as calculation are correct
-Please be kind to read carefully my personal instruction for the essay into the description and also please confirm with me once you read my essay questions and requirements and confirm that you are starting working on it.
Thank you and I am looking forward to hear from you soon.