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a) You are considering how to invest part of the gratuity you just received. You have decided to invest GHS 200,000 in three stocks that
a) You are considering how to invest part of the gratuity you just received. You have decided to invest GHS 200,000 in three stocks that should provide income to you as a retiree. Referring to the Profile of GSE Listed Companies at close of business on November 5, 2019, all things equal, which stocks should be your three top picks? Give reasons. [3 marks] b) If you invest 50% of your funds in the most attractive of these three stocks, and equal amounts of the rest of your money in the other two, how many shares of each would your money buy? Show details. [6 marks] c) One year later, the least priced of the three went up 20% and the most expensive went down by 5%. The share price of the third was unchanged. i) What is the new value of the portfolio? [3 marks] ii) If you do not buy or sell shares after the price change, what proportion of the value of your portfolio is invested in each stock? [3 marks] d) Ghana Commodity Exchange It is expected that the establishment of the Ghana Commodity Exchange will enhance smallholder farmers access to finance. Explain carefully how this is expected to work or has been working, [10 mark] a) You are considering how to invest part of the gratuity you just received. You have decided to invest GHS 200,000 in three stocks that should provide income to you as a retiree. Referring to the Profile of GSE Listed Companies at close of business on November 5, 2019, all things equal, which stocks should be your three top picks? Give reasons. [3 marks] b) If you invest 50% of your funds in the most attractive of these three stocks, and equal amounts of the rest of your money in the other two, how many shares of each would your money buy? Show details. [6 marks] c) One year later, the least priced of the three went up 20% and the most expensive went down by 5%. The share price of the third was unchanged. i) What is the new value of the portfolio? [3 marks] ii) If you do not buy or sell shares after the price change, what proportion of the value of your portfolio is invested in each stock? [3 marks] d) Ghana Commodity Exchange It is expected that the establishment of the Ghana Commodity Exchange will enhance smallholder farmers access to finance. Explain carefully how this is expected to work or has been working, [10 mark]
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