Create an Appendix for the novice investor. Clearly explain the meaning and implication of the following key variables or equations: CAPM equation.

The purpose of this assignment is to analyze the investment opportunity set for a two-asset portfolio. You are required to select two stocks and complete an analysis over the period for the previous fiscal year . Your portfolio provides an overview of the process used to create the investment opportunity set and provide an analysis regarding the resulting investment opportunity set you created. In addition to describing the steps and providing exhibits to illustrate the creation of the investment opportunity set, the implication of the following key variables also needs to be explained:
CAPM equation
Risk Free Rate
Risk Premium
Beta
Required Rate of Return

Obtain daily market returns for two stocks in the S&P500
Calculate daily holding period returns for each stock
Note: Yahoo! Finance gives you an adjusted closing price for a stock
Calculate Beta for each stock using linear regression analysis. Include this analysis as part of the project.
Calculate expected return for a two-asset portfolio using 10% increments
Use Capitol Asset Pricing Model , however, in order to use CAPM you need Beta, Risk-Free Rate , and Market Risk Premium . For this analysis, assume risk premium = 7% (historical information actually suggest MRP = 8.5% but we will assume 7%). Calculate the overall portfolio standard deviation or “risk of the portfolio”
Use 10% increments for the weights of the assets
Calculate variance and standard deviation of each stock and the correlation coefficient. Your expected return in #3 is in years, and your standard deviation is in days. Convert daily standard deviation to yearly standard deviation by considering the number of days in the year
Display investment opportunity set graphically and explain implications and potential investment strategies to consider
Create an Appendix for the novice investor. Clearly explain the meaning and implication of the following key variables or equations:
CAPM equation
Risk-Free Rate
Risk Premium
Beta
Required Rate of Return

Critically analyse different methods for business owners to legally limit their exposure to taxation.

Taxation is an important consideration for all businesses.

Critically analyse different methods for business owners to legally limit their exposure to taxation.

Use real industry examples as part of the evaluation and comparison.

This essay could include short sections on
a) differences in rates between Scotland and England
b) how dividends can be taken to be a tax efficient method of renumeration
c) national insurance contributions – a knowledge of main rates and an understanding of the effects of employer’s contribution on the profit and loss account
d) corporation tax – knowledge of rates and an appreciation of the benefit of wages in reducing corporation tax as opposed to dividends
e) Gifts and inheritance tax
f) Annual Investment Allowances
g) Writing Down Allowances
h) Capital allowances for energy-efficient technology
i) Research and Development

Apply the theories, models, and practices of finance to the financial management of an organization.

This assessment builds on your prior work in Assessments 1 and 2. It is a presentation to your staff describing you analysis, linking what tools you utilized and why you chose those tools. You will use data to support your evidence-base financial decisions. You will also explain your recommendations to maximize stakeholder value, translating those to tactical outcomes to be implemented by your staff.
Apply the theories, models, and practices of finance to the financial management of an organization.
Analyze financing strategies to maximize stakeholder value.
Apply financial analyses to business planning and decision making.
Use data to support evidence-based financial decisions.

Apply the Fama-French 3-factor model on the log return your assigned US company.

Econometrics report

1. Employ the Box-Jenkins approach, identify the ARMA form of the assigned inflation rates following the steps below:
a. Plot the correlogram of the time series.
b. From the correlogram, propose three models AR, MA or ARMA that could potentially be suitable for this time series. Provide justification for the choices.
c. Estimate all of the proposed and compare their Akaike Information Criteria to identify the most suitable model for the assigned inflation rate.
2.
a. Apply the Fama-French 3-factor model on the log return your assigned US company. The Fama-French 3-factor model has the following form:
(1)
b. models
Report your estimation results and comment on the significance levels of the estimated coefficients. Comment on the meaning and significance of all the factors.
c. Is Fama-French a good model for the particular stock? Explain your answer with evidence from your computation.
3. Conduct the ARCH-LM test on the residuals of the estimation of model (1) in question 2. Report and comment on the result of the test.
4.

a. Estimate the Fama-French 3-factor model with GARCH(1,1) on the company stock return. Comment on the estimated result regarding the magnitude and significance of the model.
b. Discuss if introducing GARCH(1,1) for this model is appropriate.
5. Apply a bivariate VAR model to the monthly log return on S&P500 and the monthly log return on your given index.
a. Report the optimal lag-length table. What are the optimal lag lengths according to different criteria?

Critically evaluate the performance of the portfolio. Should at least include the overview of the performance and the number of securities in the portfolio.

Quantitative Investment Strategy and Bloomberg backtesting

Quantitative Investment Strategy and Bloomberg backtesting Go to FT.com, under the MARKETS>MARKETS DATA>EQUITIES section load the Equities screener from the “Explore our Tool” menu on the right-hand side. Choose from the FT predefined screens:
• A Warren Buffett screen
Answer the following questions:
A. Briefly describe the investor who inspired the screener that you choose and discuss their investment philosophy  . B. Explain each of the criteria and critically evaluate the purpose and rationale behind the setting.

C. Apply the screener to the United State market on Bloomberg.

a. Show the EQS screening criteria in a screenshot b. Backtest the strategy with annual rebalance, for the past 15 years relative to last year end, equal-weighted and benchmark against S&P 500. Show the screenshot of the Equity Backtesting: Model Builder with the above set up.

c. Critically evaluate the performance of the portfolio. Should at least include the overview of the performance and the number of securities in the portfolio.

d. Suggest any possible change of criteria that may improve the performance of the screen.

List some commonly cited provisions of the standard. Explain ways the selected standard can fit into a safety and health management program.

Discuss the purpose of the OSHA General Duty Clause standard, who is affected, and who is excluded.
What are the key elements of the OSHA General Duty Clause standard?
Select and summarize a letter of interpretation for the selected standard.
List some commonly cited provisions of the standard.
Explain ways the selected standard can fit into a safety and health management program.
Then, create a fictional workplace scenario and apply the standard. Be creative. Describe a situation in a workplace and then explain how the standard relates to it and why the standard is important in the situation.

Write a short essay of 1,000 words (+/- 10%) in response to the following question: Is Basel III enough?Explain.

Write a short essay of 1,000 words (+/- 10%) in response to the following question:

Is Basel III enough?

Your work will be assessed based on the following criteria:

• Understanding why regulation is important  in the financial industry

• Be able to explain each regulation and its main pillars

• Be able to make the link between the 2008 financial crisis and its implications in terms of regulation

• Be able to understand how regulations affect the daily work of an employee in a financial institution

How can banking and financial regulations impact your daily work life?

How can banking and financial regulations impact your daily work life?

Write a short essay of 1,000 words in response to the following question:

How can banking and financial regulations impact your daily work life?

Your work will be assessed based on the following criteria:
• Understanding why regulation is important in the financial industry
• Be able to explain each regulation and its main pillars
• Be able to make the link between the 2008 financial crisis and its implications in terms of regulation
• Be able to understand how regulations affect the daily work of an employee in a financial institution

What did you enjoy about this ACE240 class? What would you do differently? Would you/have you recommended this class to a colleague or friend? If not – what changes might help?

Write yourself a personal financial plan. Use everything we’ve covered in class to develop the following four part financial plan. State your financial planning goals. Include two more goals you would like to achieve for each of the following time frames: Short term , Intermediate term and long term . Each part of the financial plan is worth up to three points.
2) In one paragraph for each goal – outline how you plan on achieving each goals. What actions will you take to help the goal come true?
3) For any quantitative goals show how much you will need to save annually or monthly to meet the goal.
4) What did you enjoy about this ACE240 class? What would you do differently? Would you/have you recommended this class to a colleague or friend? If not – what changes might help?