Assignment Detail:- AFIN3053 Advanced Corporate Finance - Macquarie University
Context
You're an equity analyst that was recently head-hunted by a hedge fund seeking your expertise in a particular stock- The hedge fund has hired you on a short-term contract to:
1- Construct a 3-statement integrated discounted cash flow -DCF- valuation spreadsheet model with a 10-year horizon on the stock in which you specialise- They've given you a standardized template to complete- This is your individual assignment-
2- Team up with fellow analysts to devise and present a video recording of
Project: The senior management of Invest 'Em All decided to implement a simplified long-short solution- The senior would like to provide custom made investment solutions to the clients with fewer stocks in the portfolio- This investment solution will be a portfolio of the risk-free asset and an optimal risky portfolio of 4 stocks with highest Sharpe Ratio in the training period- Write a proposal to the senior management to address the following tasks-
Parts:1- Provide details related to investor utility, including the theory and assumptions-2- Suggest how one's utility can be optimised under the mean-variance portfolio framework-3- Use the data from the group project and find the optimal risky portfolio of 4 stocks with highest Sharpe Ratios in the training period-4- Uses the average of the digits in your student ID as your risk aversion coefficient to find a custom optimal portfolio- Comment on this portfolio and list out the assumption that you have made in the calculation- -E-g if your student ID is 45678901, your risk aversion coefficient is A=5-5- Other comments or discussions you find relevant-
Report -Page limit: 4 including appendix-:
1- Executive Summary
2- Address all tasks in previous section
3- Conclusion
4- Appendix -if any-
5- References
You are suggested to use 2-3 pages for part 1-3, the remaining will be Appendix and references- Cover page or content page are not counted in the page limit-
Attachment:- Group-Project_Excel-rar
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