Question
Assume you have received a lump sum settlement from your job in the amount of $700,000.00 JMD. You can now invest with the short-term goal
Assume you have received a lump sum settlement from your job in the amount of $700,000.00 JMD. You can now invest with the short-term goal of earning funds to go on your dream vacation while retaining your principal amount.
You decide to invest in the Jamaican Stock Market because you have been told that it is the quickest way to make monetary gains.
Choose any number of stocks and show the purchasing and sale of these stocks (taxes should not be calculated in your calculations) between the dates of Feb 16 Mar 15, 2022. You can buy and sell several times during this period.
You can also consider investing in the repo market during this period.
a. Calculate the HPR and HPY on your investment. (10 marks)
b. State the main objectives of your portfolio, based on the limited investment options. (10 marks)
c. Explain why you invested in the stocks of your choosing. (10 marks)
d. Explain the factors affecting your risk tolerance. (5 marks)
e. Explain why you believe you made a profit/loss based on your investment choices. (5 marks)
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