Assume that each of the groups in the class wants to be assigned as the new portfolio managing group of the South Carolina pension fund and has been asked to propose a portfolio for the investment Remember you can invest maximum 40 in the stock market and 60 in the bond (corporate or treasury bonds) or treasury bills market In this question I want you to give me your portfolio choice and provide convincing arguments as to why this is the best investment For the stock market investment, you can invest in individual stocks, US market (i e Dow 30), international markets, or any combination of these All you have to do is to come up with a plan and convince the board that you have the best investment skills Australia Austria Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 16 37 39,737 3 30 15 79 1,009 3 77 1982 14 42 28,309 31 20 1 88 889 21 90 1983 68 08 41,810 9 51 14 92 862 13 56 1984 7 20 34,093 12 15 7 90 801 8 27 1985 45 42 39,727 6 57 103 14 2,023 10 54 1986 50 78 58,022 25 47 12 05 3,024 9 46 1987 4 86 63,975 18 91 16 28 3,946 9 19 1988 24 28 93,581 14 58 8 34 4,983 9 29 1989 19 82 100,359 14 67 82 61 10,184 1 96 1990 14 87 78,567 21 24 1 51 10,687 3 08 1991 35 99 107,866 37 98 13 07 11,710 9 21 1992 4 46 96,824 16 62 9 63 9,689 15 29 1993 40 96 137,181 33 23 43 89 12,909 20 63 1994 7 65 143,349 21 50 9 73 13,125 5 24 1995 21 19 169,490 18 96 12 69 17,459 20 73 1996 12 36 200,745 17 68 18 04 20,516 12 30 1997 13 10 193,164 19 51 15 95 22,040 4 78 Germany Ireland Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 3 27 57,569 4 11 4 26 1,316 5 11 1982 19 42 61,691 23 10 5 61 995 38 04 1983 40 75 73,880 7 09 76 75 1,404 16 71 1984 11 06 69,496 18 14 0 91 1,147 12 36 1985 79 47 155,940 11 69 66 23 2,286 34 31 1986 7 23 211,692 11 89 54 20 4,350 5 42 1987 38 47 162,908 3 10 11 41 4,963 28 15 1988 31 09 200,860 2 98 43 60 7,340 25 57 1989 37 46 282,378 2 93 37 16 9,785 3 15 1990 18 36 260,676 2 06 26 33 8,162 7 00 1991 8 13 266,741 12 39 17 78 10,337 14 96 1992 4 29 238,333 16 31 9 58 8,528 5 81 1993 45 85 326,772 19 53 61 34 12,228 30 91 1994 7 93 339,363 6 14 5 35 14,756 10 87 1995 7 58 400,968 21 97 25 29 19,237 20 36 1996 27 95 495,237 6 98 25 93 25,440 13 60 1997 40 01 606,704 4 78 45 30 33,347 16 69 Netherland New Zealand Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 1 31 19,952 5 76 10 05 4,118 14 58 1982 24 85 21,604 29 26 19 02 2,931 11 43 1983 56 95 28,191 7 93 95 93 5,066 27 01 1984 28 91 29,677 15 85 0 57 3,508 20 39 1985 32 58 48,023 15 20 46 88 5,083 18 10 1986 8 10 65,100 11 77 104 09 9,702 22 95 1987 18 70 66,162 4 26 35 61 7,396 20 88 1988 31 20 75,787 5 22 2 64 9,120 20 43 1989 26 89 106,486 2 03 20 65 10,139 21 78 1990 13 25 101,225 0 97 34 78 6,516 12 28 1991 17 23 112,860 11 32 26 42 11,550 40 53 1992 9 00 110,892 19 02 0 19 10,591 15 66 1993 46 31 159,107 16 98 55 63 17,072 20 88 1994 1 95 181,095 6 18 3 75 18,908 12 72 1995 20 89 231,344 17 20 15 64 22,404 19 53 1996 35 34 290,811 9 09 11 19 24,446 11 12 1997 46 43 363,562 11 21 6 89 19,631 6 79 UK US Date Stock Return Market Capitalization Bond Return Stock Return Market Capitalization Bond Return 1981 12 83 184,752 2 08 3 61 893,430 1 90 1982 28 52 191,266 51 53 22 44 1,049,433 39 16 1983 25 97 210,607 20 31 22 55 1,222,131 0 58 1984 30 18 211,340 9 96 6 24 1,228,621 14 22 1985 22 84 302,349 11 14 32 23 1,554,711 29 74 1986 26 29 403,071 9 16 17 68 1,743,364 25 21 1987 7 90 562,787 21 88 4 74 1,800,268 3 45 1988 10 08 567,570 9 54 17 84 1,956,196 9 94 1989 37 39 665,860 5 96 32 40 2,355,377 17 98 1990 8 26 705,011 8 07 3 49 2,186,563 6 85 1991 20 87 800,896 18 82 29 16 2,900,656 18 17 1992 19 55 757,364 14 30 5 90 3,074,287 8 07 1993 24 59 917,948 40 52 10 29 3,332,434 16 94 1994 6 95 903,719 9 98 1 56 3,296,047 6 19 1995 26 36 1,097,924 18 07 36 99 4,935,800 31 54 1996 15 79 1,392,185 9 42 21 29 5,926,178 1 44 1997 24 75 REF 22 98 34 41 8,003,025 14 51

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Assume that each of the groups in the class wants to be assigned as the new portfolio managing group of the South Carolina pension fund

Assume that each of the groups in the class wants to be assigned as the new portfolio managing group of the South Carolina pension fund and has been asked to propose a portfolio for the investment. Remember you can invest maximum 40% in the stock market and 60% in the bond (corporate or treasury bonds) or treasury bills market. In this question I want you to give me your portfolio choice and provide convincing arguments as to why this is the best investment. For the stock market investment, you can invest in individual stocks, US market (i.e. Dow 30), international markets, or any combination of these. All you have to do is to come up with a plan and convince the board that you have the best investment skills.

	Australia			Austria
Date	Stock Return	Market Capitalization	Bond Return	Stock Return	Market Capitalization	Bond Return
1981	-16.37	39,737	-3.30	-15.79	1,009	3.77
1982	-14.42	28,309	31.20	-1.88	889	21.90
1983	68.08	41,810	9.51	14.92	862	13.56
1984	-7.20	34,093	12.15	7.90	801	8.27
1985	45.42	39,727	6.57	103.14	2,023	10.54
1986	50.78	58,022	25.47	12.05	3,024	9.46
1987	4.86	63,975	18.91	-16.28	3,946	9.19
1988	24.28	93,581	14.58	8.34	4,983	9.29
1989	19.82	100,359	14.67	82.61	10,184	-1.96
1990	-14.87	78,567	21.24	-1.51	10,687	3.08
1991	35.99	107,866	37.98	-13.07	11,710	9.21
1992	-4.46	96,824	16.62	-9.63	9,689	15.29
1993	40.96	137,181	33.23	43.89	12,909	20.63
1994	-7.65	143,349	-21.50	-9.73	13,125	-5.24
1995	21.19	169,490	18.96	-12.69	17,459	20.73
1996	12.36	200,745	17.68	18.04	20,516	12.30
1997	13.10	193,164	19.51	15.95	22,040	4.78

	Germany			Ireland
Date	Stock Return	Market Capitalization	Bond Return	Stock Return	Market Capitalization	Bond Return
1981	3.27	57,569	4.11	-4.26	1,316	5.11
1982	19.42	61,691	23.10	-5.61	995	38.04
1983	40.75	73,880	7.09	76.75	1,404	16.71
1984	11.06	69,496	18.14	-0.91	1,147	12.36
1985	79.47	155,940	11.69	66.23	2,286	34.31
1986	7.23	211,692	11.89	54.20	4,350	5.42
1987	-38.47	162,908	3.10	-11.41	4,963	28.15
1988	31.09	200,860	2.98	43.60	7,340	25.57
1989	37.46	282,378	-2.93	37.16	9,785	3.15
1990	-18.36	260,676	-2.06	-26.33	8,162	7.00
1991	8.13	266,741	12.39	17.78	10,337	14.96
1992	-4.29	238,333	16.31	-9.58	8,528	5.81
1993	45.85	326,772	19.53	61.34	12,228	30.91
1994	-7.93	339,363	-6.14	5.35	14,756	-10.87
1995	7.58	400,968	21.97	25.29	19,237	20.36
1996	27.95	495,237	6.98	25.93	25,440	13.60
1997	40.01	606,704	4.78	45.30	33,347	16.69

	Netherland			New Zealand
Date	Stock Return	Market Capitalization	Bond Return	Stock Return	Market Capitalization	Bond Return
1981	1.31	19,952	5.76	10.05	4,118	14.58
1982	24.85	21,604	29.26	-19.02	2,931	11.43
1983	56.95	28,191	7.93	95.93	5,066	27.01
1984	28.91	29,677	15.85	-0.57	3,508	-20.39
1985	32.58	48,023	15.20	46.88	5,083	18.10
1986	8.10	65,100	11.77	104.09	9,702	22.95
1987	-18.70	66,162	4.26	-35.61	7,396	20.88
1988	31.20	75,787	5.22	-2.64	9,120	20.43
1989	26.89	106,486	-2.03	20.65	10,139	21.78
1990	-13.25	101,225	-0.97	-34.78	6,516	12.28
1991	17.23	112,860	11.32	26.42	11,550	40.53
1992	9.00	110,892	19.02	0.19	10,591	15.66
1993	46.31	159,107	16.98	55.63	17,072	20.88
1994	1.95	181,095	-6.18	-3.75	18,908	-12.72
1995	20.89	231,344	17.20	15.64	22,404	19.53
1996	35.34	290,811	9.09	11.19	24,446	11.12
1997	46.43	363,562	11.21	6.89	19,631	6.79

	UK			US
Date	Stock Return	Market Capitalization	Bond Return	Stock Return	Market Capitalization	Bond Return
1981	12.83	184,752	2.08	-3.61	893,430	1.90
1982	28.52	191,266	51.53	22.44	1,049,433	39.16
1983	25.97	210,607	20.31	22.55	1,222,131	-0.58
1984	30.18	211,340	9.96	6.24	1,228,621	14.22
1985	22.84	302,349	11.14	32.23	1,554,711	29.74
1986	26.29	403,071	9.16	17.68	1,743,364	25.21
1987	7.90	562,787	21.88	4.74	1,800,268	-3.45
1988	10.08	567,570	9.54	17.84	1,956,196	9.94
1989	37.39	665,860	5.96	32.40	2,355,377	17.98
1990	-8.26	705,011	8.07	-3.49	2,186,563	6.85
1991	20.87	800,896	18.82	29.16	2,900,656	18.17
1992	19.55	757,364	14.30	5.90	3,074,287	8.07
1993	24.59	917,948	40.52	10.29	3,332,434	16.94
1994	-6.95	903,719	-9.98	1.56	3,296,047	-6.19
1995	26.36	1,097,924	18.07	36.99	4,935,800	31.54
1996	15.79	1,392,185	9.42	21.29	5,926,178	-1.44
1997	24.75	#REF!	22.98	34.41	8,003,025	14.51