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RED DEER COLLEGE Donald School of business Jason Nevins–Bus310D Individual Assignment BUS 310 Individual Project Assignment (5 marks of total course Grade) You have just inherited $100,000 on the...

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RED DEER COLLEGE

Donald School of business

Jason Nevins–Bus310D

Individual Assignment

BUS 310 Individual Project Assignment (5 marks of total course Grade)

You have just inherited $100,000 on the condition that you must invest it. You cannot put it in a savings account but must invest in a mix of stocks and bonds. In 2-3 pages (Max) indicate how you would invest your money. How much in stocks and how much in bonds. What specific bond issues would you consider and what are the yields on these bonds? Select a minimum of 4 different companies and indicate why you would invest in

them. For each company discuss–recent price range, dividend yield if applicable, P/E ratio for company (is this an expensive stock or not) and general overview of company and its future prospects. Check annual report and any industry information you can find. Indicate how much of your stock portfolio would be invested with each company. You MUST select at least ONE bond.You will find much of this information in sites such as Morningstar.ca, Yahoo Finance and Google Finance.

You can use any other investment sites but be sure to reference all of them in your paper. References should be listed in APA format.

Please covert document to pdf and submit electronically through blackboard. NO EMAILS PLEASE

Deadline for Submission:

Sunday, Nov 3, 2019.

Answered Same Day Oct 28, 2021

Solution

Kushal answered on Oct 31 2021
155 Votes
Context-
We have inherited $ 100, 000 and we need to invest this money into stocks and bonds. Putting this money into savings account will yield very small return compared to the other financial instruments available. However, the other instruments come with the certain type of risks as compared to the savings account.
Summary-
As a part of this exercise, we have decided to invest 25% of the total inherited amount into Bonds (Corporate) and remaining amount into stocks. These are the
oad categories we have shortlisted. Apart from this, based on the modern portfolio theory and Markowitz’ portfolio optimization theorem, we have decided the weights into different companies for the stocks investment. We have maximized the Sharpe ratio.
Investment –
We have shortlisted the following for companies and they are as follows-
1. Laurentian bank – Banking
2. Brookfield Asset Management – Financial Services
3. Granite real Estate Investment Trust – Real estate
4. Air Canada- Aviation...
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