fb
$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

250 words

Error goes here

Students Who Viewed This Also Studied

3 Pages
Essay plan

Essay plan : 1. Introduction 2. Thesis 3. Analyse source 1 4. Analyse source 2 Question : Deconstruct how Indigenous Australia is represented in the Australian media. What impact do these representati ...

Type

Thesis

Subject

7 Pages
Accounting financial analysis report

Required: Adopt the role for Telco, prepare a report to address the accounting issues identified and discussed. Your report should include: a) Identify your role b) Identify the users of the financ ...

Type

Assignment

Subject

1 Page
event management

my care plan should about the event management, thank you Order Id : MAH_270315_16283_3_60185 Details : i want this to be done, but i have emailed the diffident one but i want this to be done b ...

Type

Essays

Subject

2 Pages
Business Management

The assignment  is to  Appraise  the strategic  direction  Rio Tinto  is taking  with their  Mine  of the future  project  within a framework&nbs ...

Type

Assignment

Subject

FIN8203 Strategic Investments

Question

Answered

You have $30,000 cash in your account. Your financial advisor, Mr. Chris Gayle, suggests that you can do better than the 2.5% interest rate you currently earn from the savings account that you hold at St. William Bank.  He advises you to buy the shares in the following companies. Additionally Chris suggests that you could set up a margin account with St. William Bank which will allow to borrow money to finance part of your investment in shares.

 

company

code

LVR

Number of shares

Value

         

ANZ Bank

ANZ

70%

 

 

Telstra Corp Limited

TLS

70%

 

 

BHP Billiton Limited

BHP

70%

 

 

Macquarie Group Limited

MQG

70%

 

 

Orica Limited

ORI

70%

 

 

Total

 

 

 

 

 

1.            St William Bank allows a loan to value ratio of 70% for each of the stocks in the list.  What is the maximum amount you can borrow if you intend to invest in a portfolio of stocks composed of the list shown above?                                                                                                            (2 marks)

2.            Based on the advice of Mr Gayle, you decide to borrow the maximum amount and use this plus your own savings of $30,000 and invest roughly equal amounts in each of the five stocks he suggested. Further, to ease record keeping and for convenience you decide to buy a round number of shares in each company – either rounded up or down to the closest hundred. The excel spread sheet gives you share prices of each of the stocks during February 2015. Assuming that you set up the account and buy the required number of shares on February 2, how many shares of each company will you hold?  Complete the table shown above as of February 2, 2015. Please note that you should not exceed a LVR of 70% for the entire portfolio. An interest rate of 6% will be charged by the bank for the margin loan.                               (4 marks)

3.            At the end of the month (February 27 to be precise), redo the table with current prices.

  (1 mark)

4.            Compute the gain (or loss) on the entire portfolio for the month of February.

  (1 mark)

5.            Compute the return on your investment for the month of February.

  (1 mark)

6.            Explain the impact of leverage (use of margin) on your realised return.

  (1 mark)

Note:

1.       The situation given above roughly reflects the Australian setting with respect to margin trading. Further details on this will be provided to you via Study Desk.

2.       Stock prices are provided in an accompanying excel spread sheet.

3.       Details regarding submission of assignment using a new system will also be provided in due course.

 

 

FIN8203 Strategic Investments

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

100 More Pages to Come in This Document. Get access to the complete answer.

Looking for corporate assignment help? Then MyAssignmenthelp.com is your one-stop answer. We render custom-made assistance with corporate as well as with IT assignment. We are available 24*7 to offer operating system, database, MATLAB, web development and lots of other IT subject based assignment help. We work round the clock to ensure 100% students satisfaction with our delivered service and to make sure that students get assistance on urgent basis.

More FIN8203 Strategic Investments: Questions & Answers

Q

Essay plan : 1. Introduction 2. Thesis 3. Analyse source 1 4. Analyse source 2 Question : Deconstruct how Indigenous Australia is represented in the Australian media. What impact do these representations have on the place of Indigenous Australian culture within the mainstream notion of Australia? (N ...

View Answer
Q

Required: Adopt the role for Telco, prepare a report to address the accounting issues identified and discussed. Your report should include: a) Identify your role b) Identify the users of the financial statements and describe the objectives they will have for the statements. c) Discuss the constr ...

View Answer
Q

my care plan should about the event management, thank you Order Id : MAH_270315_16283_3_60185 Details : i want this to be done, but i have emailed the diffident one but i want this to be done by this Friday ...

View Answer
Q

The assignment  is to  Appraise  the strategic  direction  Rio Tinto  is taking  with their  Mine  of the future  project  within a framework  of the theories  and concepts  in LB5230 Managing  Strategic  Resources  ...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

expert
student rating student rating student rating student rating student rating
Richard McManus

PhD in Sociology with Specialization in Communication for Social Change

233 - Completed Orders

Hire Me
expert
student rating student rating student rating student rating student rating
Steve Street

Master of Geography

1778 - Completed Orders

Hire Me
expert
student rating student rating student rating student rating student rating
Marcus Hayes

Pursuing PhD in Geography

2677 - Completed Orders

Hire Me
expert
student rating student rating student rating student rating student rating
Nastasia Georgiadou

Masters in Auditing

1590 - Completed Orders

Hire Me

Still in Two Minds? The Proof is in Numbers!

33845 Genuine Reviews With a Rating of 4.9/5.

student rating student rating student rating student rating student rating
04 Dec 2021

English

Assignment: 2 Pages, Deadline: 25 days

My assignment scored off the charts. Thank you for your help to accomplish what I couldn\\'t do on my own. Your work and efforts has been an amazing ...

flag User ID: 6***28 Tarboro, United States

student rating student rating student rating student rating student rating
04 Dec 2021

Management

Assignment: 2 Pages, Deadline: 1 day

he assignment was well done. ThanksThe content was accurate and the structure was to the best.

flag User ID: 6***26 Canada

student rating student rating student rating student rating student rating
04 Dec 2021

Medical

Assignment: 5 Pages, Deadline: 5 days

excellent I had exactly what i want The presentation is clearthanks very much .....

flag User ID: 7***16 United Arab Emirates

student rating student rating student rating student rating student rating
04 Dec 2021

Management

Programming: 10 Pages, Deadline: 11 days

good and precise, i liked the communication between the expert and myself and also the customer reps

flag User ID: 8***57 United Kingdom, Great Britain

student rating student rating student rating student rating student rating
04 Dec 2021

Nursing

Assignment: 2.8 Pages, Deadline: 2 days

Well done. followed the rubric and answered all questions well. Plagiarism free work.

flag User ID: 7***52 Australia

student rating student rating student rating student rating student rating
04 Dec 2021

Maths

Home Work: 0 Pages, Deadline: 5 days

Really fast return, great work and brilliant response. Thank you i really appreciate it and will use again.

flag User ID: 8***15 United Kingdom, Great Britain

student rating student rating student rating student rating student rating
04 Dec 2021

It Write Up

Essay: 2 Pages, Deadline: 22 hours

expert finish the assignment on the time. Looks the assignment meet the requirement as per my request.

flag User ID: 5***87 Malaysia

student rating student rating student rating student rating student rating
03 Dec 2021

Marketing

Assignment: 12 Pages, Deadline: 2 days

very very good. also very willing to help out with escalations and reviewing the assignment for me.

flag User ID: 8***21 Singapore

student rating student rating student rating student rating student rating
03 Dec 2021

Marketing

Assignment: 6 Pages, Deadline: 7 days

The assignment provided was great. i had given one less start because the assignment is still not graded

flag User ID: 8***14 Mississauga, Canada

student rating student rating student rating student rating student rating
03 Dec 2021

Assignment

Essay: 2 Pages, Deadline: 4 days

Hi Thank you so much for your help today i got very high score I am so happy thanks again

flag User ID: 2***93 Melbourne, Australia

student rating student rating student rating student rating student rating
04 Dec 2021

English

Assignment: 2 Pages, Deadline: 25 days

My assignment scored off the charts. Thank you for your help to accomplish what I couldn\\'t do on my own. Your work and efforts has been an amazing ...

flag User ID: 6***28 Tarboro, United States

student rating student rating student rating student rating student rating
04 Dec 2021

Management

Assignment: 2 Pages, Deadline: 1 day

he assignment was well done. ThanksThe content was accurate and the structure was to the best.

flag User ID: 6***26 Canada

student rating student rating student rating student rating student rating
04 Dec 2021

Medical

Assignment: 5 Pages, Deadline: 5 days

excellent I had exactly what i want The presentation is clearthanks very much .....

flag User ID: 7***16 United Arab Emirates

student rating student rating student rating student rating student rating
04 Dec 2021

Management

Programming: 10 Pages, Deadline: 11 days

good and precise, i liked the communication between the expert and myself and also the customer reps

flag User ID: 8***57 United Kingdom, Great Britain

student rating student rating student rating student rating student rating
04 Dec 2021

Nursing

Assignment: 2.8 Pages, Deadline: 2 days

Well done. followed the rubric and answered all questions well. Plagiarism free work.

flag User ID: 7***52 Australia

student rating student rating student rating student rating student rating
04 Dec 2021

Maths

Home Work: 0 Pages, Deadline: 5 days

Really fast return, great work and brilliant response. Thank you i really appreciate it and will use again.

flag User ID: 8***15 United Kingdom, Great Britain

student rating student rating student rating student rating student rating
04 Dec 2021

It Write Up

Essay: 2 Pages, Deadline: 22 hours

expert finish the assignment on the time. Looks the assignment meet the requirement as per my request.

flag User ID: 5***87 Malaysia

student rating student rating student rating student rating student rating
03 Dec 2021

Marketing

Assignment: 12 Pages, Deadline: 2 days

very very good. also very willing to help out with escalations and reviewing the assignment for me.

flag User ID: 8***21 Singapore

student rating student rating student rating student rating student rating
03 Dec 2021

Marketing

Assignment: 6 Pages, Deadline: 7 days

The assignment provided was great. i had given one less start because the assignment is still not graded

flag User ID: 8***14 Mississauga, Canada

student rating student rating student rating student rating student rating
03 Dec 2021

Assignment

Essay: 2 Pages, Deadline: 4 days

Hi Thank you so much for your help today i got very high score I am so happy thanks again

flag User ID: 2***93 Melbourne, Australia

5% Cashback

On APP - grab it while it lasts!

Download app now

*Offer eligible for first 3 orders ordered through app!

ribbon
callback request mobile
Have any Query?