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Risk and Return

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Department
Finance
Course
MGFB10H3
Professor
Daga
Semester
Winter

Description
Mini Case Portfolio Return and RiskAs the self designated money manager of the family Julianne deems it her responsibility to find the best way to grow the familys savings The high interest savings account at the bank only pays around 2 percent yearly which is very low compared to the average of the past two decades at about 61 percent To make the money generate the maximum positive output a friend who also works as a financial consultant advised Julianne to invest a chunk of the savings on the more rewarding but riskier stockmarket As Julianne has very little experience investing her friend recommended starting with a smaller amount first and looking at businesses that she is familiar withWhile researching investment blogs on her tablet and eyepicking financial news on the smart television set in the living room Juliannesuddenly had a small revelationJulianne uses daily two gadgets produced by two businesses largely covered in the news and with a solid performance on the stock market One is an Apple iPad and the second one is a Sony TV She has also been using other Apple and Sony products for a couple of years now and knows that these are trustworthy businesses with excellent reputations and likely to maintain or improve their competitive position in the long run Julianne wants to build a solid investment plan so she has decided to approach these potential investments methodically First she needs to see what she deals with in terms of potential return and risk Therefore Julianne downloaded the 1financial information for the past 13 years as available on financial portals She can compare her investments with investments in riskfree assets Canadian Government 10 Year Notes have a 175 rate as of December 2012 She also downloads the SPTSX composite index historical prices for th
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