We write, we don’t plagiarise! Every answer is different no matter how many orders we get for the same assignment. Your answer will be 100% plagiarism-free, custom written, unique and different from every other student.
I agree to receive phone calls from you at night in case of emergency
Please share your assignment brief and supporting material (if any) via email here at: email@example.com after completing this order process.
No Plagiarism Guarantee - 100% Custom Written
Assessment Activity 3
Short Answer Questions
Answer the following questions in the spaces provided.
a) What is the formula for calculating Earnings Per Share?
b) Explain the difference between a residential home and an unlisted property fund.
c) Explain the difference between top-down and bottom-up research when it comes to choosing which
investments to select in a share fund.
Background to Questions 2 and 3
You are provided with the following 3 portfolios:
Investment Portfolio 1
Investment Portfolio 2
Investment Portfolio 3
When deciding on what is an appropriate asset allocation, investors often consider the following:
a) Which of the six investor considerations listed above do you believe would be very important
for an investor who chooses to invest in Investment Portfolio 1?
b) Which of the six investor considerations listed above do you believe would be very important
for an investor who chooses to invest in Investment Portfolio 2?
c) Which of the six investor considerations listed above do you believe would be very important
for an investor who chooses to invest in Investment Portfolio 3?
Simon and Janine Mackintosh are married. They are both 65 and have just retired. They have $1,500,000 funds in a combination of superannuation and non-superannuation investments. They own their home which they intend to retain as their home during their retirement phase. They do not have any debt. They plan to spend $60,000 p.a. in retirement and do not have any further planned annual or lump sum expenses.
They have two daughters to whom they would like to eventually leave their home and remaining investment assets upon their deaths.
Simon and Janine are able to tolerate some investment fluctuations, although they would be very concerned if their investments fell by 40% in any year. Throughout most of their working life, they invested their funds in growth investment options comprising 15% defensive investments (cash and fixed interest) and 85% in growth investments (shares and property). However, they want to change their asset allocation now that they are both retired.
Simon and Janine are both healthy and they are each expected to live approximately 20 more years.