Equity Market Analysis
Imagine you are a new hired equity market analyst in a medium-size investment firm. The company has been approached by a new client who has been inherited a handsome amount of money (several hundreds of thousands of Stirling pounds) who wants to invest this money in the UK equity market. The client is a medical doctor with no financial literacy at all and this makes him a bit nervous and ager to learn a little about the equity market and asset management.
You have been asked to prepare a briefing note for the prospective client. You have to support your discussion and arguments by adequate academic literature. It is up to you to decide on the content of the note, but it should include an appropriate mixture of:
a) The components of risks for a financial asset and the effect of diversification
b) How the relationship between risk and return is maintained using different models
c) The mutual funds (structure; types; benefits; performance).
d) Investing styles
e) Types of share analysis to value a stock
f) Advantage and disadvantages of investing in international markets
