Write a report that will explain the performance of your portfolio in the year 2020. Assume that you have the benchmark portfolio and that the investment period runs from the beginning of January 2020 to the end of December 2020.

Description

As a Fund Manager you have to write a report that will explain the performance of your portfolio in the year 2020. Assume that you have the benchmark portfolio and that the investment period runs from the beginning of January 2020 to the end of December 2020. The benchmark asset weights should be 30% SPY, 20% TLT, 10% GLD, 10% USO, 20% EEM and 10% cash. That means that $300,000 should be in SPY, $200,000 should be in TLT, $100,000 should be in GLD, $100,000 should be in USO, $200,000 should be in EEM and $100,000 will remain in cash. Note that cash is the risk-free asset in this case and the other assets comprise the market portfolio and the investment universe.

You can calculate the number of securities that you should have at the beginning (and end) of 2020 by dividing the total investment value (above) by the price of these ETF at the beginning of 2020. The first date will be 2nd January 2020.

You must discuss the following aspects:

1. The performance of your portfolio. This must include the return that you achieved on the $ 1.0 million and the amount of risk that you took.

2. The key events that affected the portfolio and the way that these events affected portfolio assets.

3. A critical evaluation of investment theories. How effective were they? What worked? What did not work? Why?

The report will be about 1000 words (with 10 percent leeway). It should be professional looking document that will explain your performance. The following marking criteria will be applied.

MUST INCLUDE:

1. Risk, return and relative perfor- mance are discussed critically and this is used to assess the original strategy.

2.excellent discussion of asset performance and this is used to evaluate the weights that were chosen

3. The performance of the portfolio is used as the basis of a critical assessment of the investment theories. The is evidence of extensive reading and understanding.

4. There is excellent presentation. Tables are diagrams are fully explained. The presentation enhances the main points that are being made

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