1. Assume you are an investment advisor. Your client is unsure what the main benefits and reasons for investing in a Mutual Fund or an ETFs are
o Explain the main differences and similarities between each other o Explain what the main advantage and disadvantage of investing in
mutual funds or ETFs are
o Explain the main difference between active and passive management
2. Go to https://www.morningstar.com
o What information does the Morningstar Style Box provide?
o Morningstar assigns a Rating to each Mutual Fund. What are the
criteria they use to assign this rating?
o Use the information provided above (style box and ratings) to choose 5
different mutual funds/ETFs (5 funds/ETFs per each portfolio) to prepare 3 portfolios for 3 different types of investors:
1. 2. 3.
o In half 1.
2. 3.
Explain
Aggressive Moderate Conservative
a page for each portfolio, explain:
The rationale behind choosing the given funds/ETFs per each portfolio
The criteria chosen to build each portfolio
Follow up the prices for all 3 portfolios for a week. Calculate the return for each portfolio at the end of the week.
- Main document please uploaded in pdf format.
- It is mandatory to submit an EXCEL file where
you explain the different calculations you made. - To that effect, please find 2 tabs in Turnitin
submission point. - Calculation results HAVE TO be explained and
the calculation steps displayed.
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