Assignment - Need to create a high-quality presentation on the given topic.
You have 10 Mn to invest , You have invested 10 Mn in Fund A
Fund A has 10 Million, the Fund should make 500 thousand cash flow every year which should then be re-invested in fund B.
Fund A should consist of all these
US Equities = 40% maximum
Offshore asset equites = 10% maximum
USD Debt = 40% maximum
Mortgages 10% maximum
Alternate investments = 10% maximum
And the fund B should consist of Fixed income or short money markets (18 months)
The constraints are that the fund's 1 day 99% VAR and 5 day 95% VAR should not lose more than 1 million dollars in a day and it should satisfy the stress level that US Equity should not lose 5%, Fixed income should not lose 3% and foreign exchange should not lose more than 5%.
You can use any data from any website for your analysis.