1. Explain in general how equity , preference shares , government bonds, debentures , mutual fund and other investment instruments are traded in financial markets . 2. Analyze investment opportunities that align with the financial goals of the Mr. Akbar and Ms. Arwa . 3. Recommend specific investments to create a portfolio from the above list of investment alternatives (at least 4 investment alternatives ). 4. Calculate Expected Return , Variance , Standard Deviation , Covariance and Coefficient of Variance on each item in the proposed investment portfolio. 5. Recommend strategies for long- term and short -term investment ; include justifications for the recommendations you make. General Instruction 1. You are required to write a report. Font: Times New Roman , font size 12 and a line spacing of1.5 . 2. This report should be completed by Individual and technically the report should

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter15: Mutual And Exchange Traded Funds
Section: Chapter Questions
Problem 2FPC
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Mr. Akbar and Ms. Arwa are both 45 years old. They have two main financial goals: saving for retirement and their children's college education , Mr. Akbar has OMR 35,000 and Ms. Arwa has OMR 40,000 . They come to you for investment advice on the basis of the following investment alternatives : - Sl No 1 2 3 4 5 Securities Equity Preference shares Government Bonds Bank deposits Debenture Mutual Fund Securities return 12.5 % 10 % 6% 4.5\% 8% 9% 6 Your analysis and investment strategy proposal should : 1. Explain in general how equity , preference shares , government bonds, debentures , mutual fund and other investment instruments are traded in financial markets . 2. Analyze investment opportunities that align with the financial goals of the Mr. Akbar and Ms. Arwa . 3. Recommend specific investments to create a portfolio from the above list of investment alternatives (at least 4 investment alternatives ). 4. Calculate Expected Return , Variance , Standard Deviation , Covariance and Coefficient of Variance on each item in the proposed investment portfolio. 5. Recommend strategies for long- term and short -term investment ; include justifications for the recommendations you make. General Instruction 1. You are required to write a report. Font: Times New Roman , font size 12 and a line spacing of1.5 . 2. This report should be completed by Individual and technically the report should

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