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1.2 You work for a fund management company who specialize in the area of investments, suitable for young rich celebrities looking for a safe but

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1.2 You work for a fund management company who specialize in the area of investments, suitable for young rich celebrities looking for a safe but profitable home for their newly acquired wealth. You have been asked by your line manager to assess each of the following three investments, regarding their suitability for inclusion into your portfolio of opportunities for your client base. Information is given for each investment as well as the risk-free rate and market index data, as calculated at the end of yesterday's trading session: Expected Beta Standard Sharpe Jensen Morningstar return deviation Ratio Measure rating 1. High Yield Fund 21% 2 36% 0.389 -0.02 2. Safe Haven Fund 11% 0.5 35% 0.114 0 3.Speculative Fund 19% 1.3 43% 0.279 0.016 Market Index 15% 1 27% 0.296 0 Risk Free Rate 7% .ee 3 Continued Overleaf Provide a critical analysis on the suitability or otherwise of each fund, using all the information provided in the table. You are also expected to provide further insight into your discussion by utilising other, derived information, such as the fund's relative position to the security market line. The maximum word count is 600 words (21.3%) TOTAL (33.33%) QUESTION 1.2 You work for a fund management company who specialize in the area of investments, suitable for young rich celebrities looking for a safe but profitable home for their newly acquired wealth. You have been asked by your line manager to assess each of the following three investments, regarding their suitability for inclusion into your portfolio of opportunities for your client base. Information is given for each investment as well as the risk-free rate and market index data, as calculated at the end of yesterday's trading session: Expected Beta Standard Sharpe Jensen Momingstar return deviation Ratio Measure rating 1. High Yield Fund 21% 2 36% 0.389 -0.02 2. Safe Haven Fund 11% 0.5 35% 0.114 3. Speculative Fund 19% 1.3 43% 0.279 0.016 Market Index 15% 1 27% 0.296 0 Risk Free Rate 7% .. we 3 Continued Overleaf Provide a critical analysis on the suitability or otherwise of each fund, using all the information provided in the table. You are also expected to provide further insight into your discussion by utilising other, derived information, such as the fund's relative position to the security market line. The maximum word count is 600 words (21.3%) TOTAL (33.33%) QUESTION 2

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