Question 1 (25 marks) Assuming below table is extracted from Bloomberg and reflects the actual treasury yields of U.S. Government bills/bonds in U.S. today. In your own words, please write down (of not more than 600 words) how you, as a wealth manager, would advise a potential customer/investor Miss C. Lee, who is in her 40's and a successful executive working in a multinational corporation in Malaysia with some spare cash to invest for her retirement plan, to invest in a bond portfolio consisting of the below bills/bonds. Bloomberg Overview Indices U.S. U.K. Germany Japan Treasury Yields NAME PRICE YIELD 1 MONTH 1 YEAR COUPON 0.00 0.06 0.06% GB3:GOV 3 Month -3 -150 0.00 0.08 GBG.GOV 6 Month 0.08% -3 -149 0.00 0.10 0.10% -2 -144 GB12.GOV 12 Month 013 9994 0.1696 -145 GT2.GOV 2 Year 0.25 99.41 0.37% -2 -125 GT5.GOV 5 Year GT10.GOV 10 Year 0.88 100.48 0.82% -0 -95 1.63 102.53 152% -12 -71 GT30.GOV 30 Year You will need to help Miss C. Lee construct a bond portfolio including the percentage of funds to invest for each proposed U.S. Government bill(s)/bond(s) in the portfolio and their justifications relating to potential risks and potential returns of this portfolio. Marks of your answers will be marked based on: 1) Relevance of answers to the case given. (5 marks) 2) Logical developed argument of your proposed recommendation. [5 marks] 3) Originality and creativity of analysis behind every justification provided. [10 marks] 4) Overall presentation including word limit, clarity of writings and grammars. [3 marks] Question 1 (25 marks) Assuming below table is extracted from Bloomberg and reflects the actual treasury yields of U.S. Government bills/bonds in U.S. today. In your own words, please write down (of not more than 600 words) how you, as a wealth manager, would advise a potential customer/investor Miss C. Lee, who is in her 40's and a successful executive working in a multinational corporation in Malaysia with some spare cash to invest for her retirement plan, to invest in a bond portfolio consisting of the below bills/bonds. Bloomberg Overview Indices U.S. U.K. Germany Japan Treasury Yields NAME PRICE YIELD 1 MONTH 1 YEAR COUPON 0.00 0.06 0.06% GB3:GOV 3 Month -3 -150 0.00 0.08 GBG.GOV 6 Month 0.08% -3 -149 0.00 0.10 0.10% -2 -144 GB12.GOV 12 Month 013 9994 0.1696 -145 GT2.GOV 2 Year 0.25 99.41 0.37% -2 -125 GT5.GOV 5 Year GT10.GOV 10 Year 0.88 100.48 0.82% -0 -95 1.63 102.53 152% -12 -71 GT30.GOV 30 Year You will need to help Miss C. Lee construct a bond portfolio including the percentage of funds to invest for each proposed U.S. Government bill(s)/bond(s) in the portfolio and their justifications relating to potential risks and potential returns of this portfolio. Marks of your answers will be marked based on: 1) Relevance of answers to the case given. (5 marks) 2) Logical developed argument of your proposed recommendation. [5 marks] 3) Originality and creativity of analysis behind every justification provided. [10 marks] 4) Overall presentation including word limit, clarity of writings and grammars. [3 marks]
