To complete this assessment you have been provided with the following resources:
1. A pdf document containing the financial details and aspirations of Mr John Cass, as well as the results of a risk profiling questionnaire that Mr Cass recently completed. ( Mr Cass)
2. A spreadsheet with a range of US macroeconomic and financial market information. ( Data for MVA analysis)
3. A spreadsheet with a very wide range of financial market indices (all in sterling). ( Asset class data)
Part 1 By using the asset class data in the tab 'Asset class data for MVA' in the spreadsheet Data for MVA analysis, and any other data that you may wish to collect for yourselves, and drawing on the information about Mr Cass in Mr Cass, use the principles that lie behind Asset Allocation 1.0, to write a report recommending an asset allocation for Mr Cass that will help meet his financial aspirations. (In the tab 'Background data' in the same spreadsheet you will find further data that may help you form expectations about asset class returns). In writing this report, please explain and justify, as far as possible, any inputs, assumptions and choices that you make to arrive at the recommended asset allocation. Please also submit the spreadsheet that you use to arrive at the recommendation, making sure that it is presented clearly.
Part 2 By using all, or some of the asset class data in the spreadsheet Asset class data and drawing on the information about Mr Cass in Mr Cass, use the principles that lie behind Asset Allocation 2.0, to write a report recommending an investment strategy for Mr Cass that will help meet his financial aspirations. Explain clearly the choices that you make in arriving at your recommendation, and undertake any relevant performance statistics to demonstrate the efficacy of your recommendation. Please also submit the spreadsheet that you use to arrive at the recommendation, making sure that it is presented clearly.
Part 3 Reflect on the differences, strengths and weaknesses between your two investment recommendations in parts 1 and 2 of this assessment.
Part 4 Finally, being careful to justify your answer, explain whether you would appoint active or 'passive' managers to manage the individual asset class components of your recommendations in parts 1 and 2 of this assessment.
Attachment:- Data analysis.zip