- Discuss the investment environment issues in the context of legal framework and ethics
- Describe the fundamental concepts of investing covering basic supply and demand analysis, economic life cycle theory, time value of money, risk and return, market liquidity, diversification and asset allocation in an investment portfolio where appropriate
- Describe and analyze the process of investor profiling and the different stages of life cycle investing with reference to an investor's portfolio
- Recognize the various basic investment products, explain their relative merits and demerits in the context of their investment suitability for an investor
Based on your understanding of the investment tools and concepts that you have learned thus far, explain how you can use the same tools and concepts to advise Mr. A.
Discuss your recommendation(s) on how and with whom Mr. A should or should not invest the cash he has on hand. Analyse the relative merits, demerits and risks involved and discuss the potential outcomes if Mr. A were to take up all your recommendations. Besides considering the 3 proposals outlined in the case, you can also discuss additional suggestion(s) and/or alternative(s) where appropriate (considering the various assumptions mentioned) all of which must be duly supported by sound and detailed arguments. Your answer should be between 800 and 1,300 words.
Additional Guidance Notes For Students
1. In presenting your recommendation(s) to Mr. A, please remember to state the relevant steps involved in arriving at such a conclusion(s) including providing details of your analysis in determining Mr. A's various needs, requirements and objectives and how your recommendation(s) meet these criteria.
2. You should demonstrate your understanding of the investment concepts and tools learned (refer to your Course Study Guide in case of doubts) in preparing your recommendation/s with sound reasons and explanations.
3. You can state additional assumptions which are reasonable and appropriate if these help you to further enhance and make sense of your advice to Mr. A.
4. Although not compulsory, you are encouraged to use graphs, charts and tables etc. where appropriate to clearly illustrate the various points in your presentation. Bear in mind that such graphical representations not only save on the words you use but also can be an effective means of communicating your ideas to Mr. A.
5. Be reminded that you must write using 800 - 1,300 words
6. You must use proper referencing and citation formats where applicable. Copying from the work(s) of other student(s) or re-using of materials from past assignments will result in severe penalties which may lead to your failing the TMA.