I need help on how to approach this assignment. i have to write a memo after completing the simulation.
Risk and Return Tradeoff Memo
a. Complete the Constructing and Managing a Portfolio simulation
c. Based on your results from the simulation, prepare 1000 word
memo to Rainier Ekstrom, Casa Bonita's Chief Executive Officer (CEO), in which you analyze the risk and return tradeoffs associated with the organization's investment portfolio. Be sure to also address the following in your memo:
1) The decisions you made in the simulation.
2) A brief discussion of how the Sharpe Ratio helps in making investment decisions.
3) Recommendations for changes in the organization's investment strategy in order to improve its investment performance.© BrainMass Inc. brainmass.com October 16, 2018, 11:26 pm ad1c9bdddf
To: Rainier Ekstrom, Casa Bonita's Chief Executive Officer (CEO)
Subject: Portfolio Selection and Investment Strategy
My first task was selecting 4 stocks with the given information, industry and company specification. I evaluated all the stocks based on the risk and return they stocks offered and also paid attention to the right portfolio diversification to minimize the unsystemic risk. For selecting right stock, I studied the profile of each company to get some industry and company related insights. Some of the stocks like Infoway computers, Transconduit Inc, Desktop Inc, Western Connect Airlines, and One voice telecom.
Investment strategy that Casta Bonita Ceramics decided that it will not invest in very high risk stocks though it would aim to achieve highest return. For that I decide to keep the four selected stocks well diversified. The stocks offering high returns are Infoway Computers, Transconduit Inc, and One Voice Telecom but associated risks are also very high with these stocks. These stocks belong to Information Technology, Information Technology and Telecommunications industry. Out of these three high risk companies, I have given preference to Infoway computers because of it being a large organization, good track record and its strength in comparison to other two companies. This is also ...
The expert completes, constructs and manages a portfolio simulation. The risk-return trade-off is described. A brief discussion of how the Sharpe Ratio helps in making investment decisions is provided.
Silicon Arts: Risk Analysis on Investment Decision Simulation
See attached file for simulation.
After completing the Capital Budgeting simulation, prepare an APA paper analyzing the risks associated with your investment decision. Included in the analysis of risk should be a mitigation plan for each risk discussed.
Focus on concepts learned and applied in the exercise and present the detailed results from the simulation analysis. Explain the risks and how Silicon Arts addressed the risks as well. You need to develop a thorough understanding of sensitivity analysis, net present value, internal rate of return, and profitability indexView Full Posting Details