There is the potential for Anna to receive a "special bonus" if the firm has a very busy year and generates abnormally high profits.  Anna has decided to allocate any "special bonus" payments towards developing an investment portfolio of shares.

 

a)Describe, in general, the key features of shares as investment securities. 

 

b)Anna is interested in "Blue Chip" companies and "Emerging Technology" companies.  Compare, in general, the risks and returns typically associated with shares in these two types of companies. 

 

c)Make a recommendation on what proportion of the "super bonus" should be allocated to Blue Chip shares and to Emerging Technology shares.  

In your response make sure you take into account the specific circumstances of Anna and clearly set out the reasons for the recommendation.