Question 1 Investing in a specific company. 20% of the grade, 1000 words
Choose a company in a part of the world and domain where you feel at ease with daily quotes available at https://finance.google.com and which issue
dividends (e.g. you can select a component of the S&P 500, Nasdaq, SMI (Swiss Market Index) or any European market)
Describe the company, consider the recent performance (take five years) of the shares have selected. That means that you have to research the price of the
chosen share five years ago and today. In addition you must establish what dividends were paid. Then using one of the techniques covered in the course
(discounted cash flow or end value with dividends carried forward with a stated interest rate), establish the historical return on investment.
You can use https://finance.google.com to find the data on share price. Look under “sector summary”, select a sector you like, then a company for your
research. To find data on dividends, you can look at the company web site (which is listed on the page of finance.google.com devoted to your company.
You may use other data sources is you prefer, e.g. https://cnbc.com
Question 2: An investment strategy based on ETFs
65% of the grade, 3000 words
To answer this question you are to develop an investment strategy specifically for yourself, and as realistic as possible, and reflecting your view of macroeconomics and its impact on financial markets.
First analyse your own situation and risk profile (character, life-style, time horizon, objectives, etc) and then your macro-economic view, which should spell out
your view of global economic trends and how they affect your choice of ETFs.
Then, as a reflection of your risk profile and economic view, determine your asset allocation and justify it. That implies the mix of shares, bond, possibly
commodities and cash.
Select a portfolio of ETFs using examples and providers from the syllabus (Unit 8). You may however also use any ETF available at
If you are overwhelmed by the large number of ETFs you can use https://www.ubs.com/ch/en/asset-management/etf-private.html (select Switzerland as a
place of residence to access the list) or https://www.ishares.com/ch (select private investor, Switzerland) to browse and select your ETFs.
Normally five to seven ETFs will suffice for diversification. Bring an element of timing into your investment plan.
Note that for this exercise you may not include stocks or bonds directly in this portfolio, only ETFs.
Question 3: Invest in a bond: 15% of the grade, 500 words
Select a government or corporate bond from these available at
Through the bond explorer at
and explain why you picked that particular bond and what your estimated return will be if you hold the bond till maturity.
N.B. As this is an academic paper, you must use the Harvard referencing system. You will be penalized for inaccurate, missing and erroneous referencing. If
you are unsure on how to reference using the Harvard referencing system please review the Induction Module