Question
Choose one of the ensuing questions for your task. Create your analysis and investment strategy proposal by conducting the necessary research and applying your knowledge
Choose one of the ensuing questions for your task. Create your analysis and investment strategy proposal by conducting the necessary research and applying your knowledge in the course. 1. Ethel is a retired 75-year-old who has K5, 000, 000 after selling her small business and paying taxes on the sale. She wants to invest this money. Ethel would like the capital to rise faster than inflation to maintain the purchasing power of her wealth. However, she would also like to make low-risk investments and have easy access to at least K500, 000 per year for the next five years. [100 Marks] 2. Noria is 32 years old. She recently won the lottery and chose to accept a lump sum. She has K2, 400,000 left after taxes. Noria wants to spend K500, 000 right away and invest the remainder. While she doesn't want to take on excessive risk, she does want to optimize her return in order to be able to quit her job immediately and enjoy the most opulent lifestyle for the rest of her life. [100 Marks] NB: Whichever prompt you choose, your evaluation and suggested investment strategy should: Give a general explanation of how financial markets are used to trade stocks, bonds, funds, futures, debts, and other investment products. Analyze investment alternatives that fit the scenario's financial objectives. Make recommendations for specific investments using the funds you have to build a portfolio. Analyze the risks associated with the suggested assets as well as the potential effects of diversification, taxation, inflation, and currency fluctuations on the suggested portfolio. Determine the projected rates of return for each investment in the suggested portfolio. Offer advice on both long- and short-term financial methods, and support your suggestions with arguments. Instructions 1. Page limit: 4 to 5 pages 2. Font size: 12 3. Font type: Times New Roman 4. Referencing style: Harvard 5. This should be done in one assignment document. Should you fail to find a group, do it individually. 6. NB: Marking scheme include: Cover page, table of contents, Introduction, relevance and depth of main body, evidence of research (in text citation), coherence and Recommendations. 7. Write in the third person as required in a scholarly paper. 8. Due date: 10th September, 2022. Submissions should be done ONLINE in Moodle. No physical submissions are permitted. 9. NO PLAGIARISM, your document should have a similarity index of at most 20%.
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