Aunty Mary is risk averse as she is retired and from your study you know investing in one stock can be risky. So you also decide you also need to explain how she can diversify her investment risks.
- Explain the concept of diversification to Aunty Mary. How do you think she can diversify with the selected share into a portfolio?
- Identify and briefly discuss two (2) systemic and two (2) non-systematic risks factors impacting the share you have selected. You can draw on some of the news release about the company and the industry it is in.
LIST OF AUSTRALIAN STOCK EXCHANGE (ASX) COMPANIES
|BHP BILLITON LIMITED||BHP|
|COMMONWEALTH BANKING CORP||CBA|
INSTRUCTIONS FOR ASSIGNMENT 2 (CORPORATE FINANCE )
Objectives: The aim of this assignment is to give students an understanding of real life finance issues; to help students understand the linkage between theory and practice and to foster students’ research, critical analysis and both written and verbal communication skills.
The breakdown for allocating the marks for this assignment is as follows: –
Question 1: 5 marks
Question 2: 15 marks
Presentation: 5 marks
– To the writer please choose either BHP or Santos, the company to invest in shares.
– Please draw timeline
– Indicate the formula used in each part of the calculation.
– Please show all steps in the calculations and provide written explanations for each step.
– Support your arguments and views with references and from acceptable sources. (up-to-date).