Question

a Using a cash contribution of $ you are examining three securities as potential

single investments:

Origin Energy Limited: single stock LVR ;

Seven West Media Limited: single stock LVR ;

Cooper Energy Limited: single stock LVR

o Calculate the permitted borrowing amount;

o Calculate the maximum value of the portfolio value.

b Considering an investment in Origin Energy, and assuming a loan drawdown of $

analyse the financial portfolio management effect under the following market conditions

assume a buffer of :

No change in the portfolio value;

A decline in the portfolio value;

A decline in the portfolio value.