For this assignment, you will develop a recommendation for a diversified portfolio based on an analysis of risk and return, different types of investments, and short- and long-term investments.
Instructions Write a five-to-seven-page recommendation in which you:
Analyze the relationship between risk and rate of return. Explain how you would develop a portfolio that minimizes risk and maximizes the rate of return. Explain how stocks, bonds, real estate, metals, and global funds may be used in a diversified portfolio. Provide evidence to support your explanation. Evaluate the concept of the efficient frontier and how it may be used to determine an asset portfolio for an investor. Develop an argument for a diversified portfolio investment. Recommend an ideal portfolio mix to maximize the rate of return for the short term and long term based on the economic outlook for the next year. Explain the key differences between the short and long term. Use four external resources to support your work. Note: Wikipedia and other websites do not qualify as academic resources. This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Recommend strategies to maximize short and long term investment returns for a diversified investment portfolio. Evaluate risks, challenges, and benefits associated with high-risk investments, and complex investment vehicles. Examine concepts related to investment strategies, portfolio performance, assets, risk assessment, valuation, impacts of economic changes, market conditions, industry trends, and the derivatives market. Week 4 Assignment Portfolio ManagementCriteriaRatingsPointsAnalyze the relationship between risk and rate of return.ExemplaryAnalyzed the relationship between risk and rate of return. 16.5 to >14.85 ptsCompetentAnalyzed the relationship between risk and rate of return, but the analysis is incomplete. 14.85 to >13.19 ptsNeeds ImprovementIdentified the relationship between risk and rate of return. 13.19 to >11.55 ptsUnacceptableDid not analyze the relationship between risk and rate of return. 11.55 to >0 pts/16.5 ptsExplain how you would develop a portfolio that minimizes risk and maximizes the rate of return.ExemplaryExplained how you would develop a portfolio that minimizes risk and maximizes the rate of return. 16.5 to >14.85 ptsCompetentExplained how you would develop a portfolio that minimizes risk and maximizes the rate of return, but the explanation lacks details and clarity. 14.85 to >13.19 ptsNeeds ImprovementExplained how you would develop a portfolio that minimizes risk and maximizes the rate of return, but the explanation is incomplete. 13.19 to >11.55 ptsUnacceptableDid not explain how you would develop a portfolio that minimizes risk and maximizes the rate of return. 11.55 to >0 pts/16.5 ptsExplain how stocks, bonds, real estate, metals, and global funds may be used in a diversified portfolio.ExemplaryExplained how stocks, bonds, real estate, metals, and global funds may be used in a diversified portfolio. 16.5 to >14.85 ptsCompetentExplained how stocks, bonds, real estate, metals, and global funds may be used in a diversified portfolio, but the explanation lacks details and clarity. 14.85 to >13.19 ptsNeeds ImprovementExplained how stocks, bonds, real estate, metals, and global funds may be used in a diversified portfolio, but the explanation is incomplete. 13.19 to >11.55 ptsUnacceptableDid not explain how stocks, bonds, real estate, metals, and global funds may be used in a diversified portfolio. 11.55 to >0 pts/16.5 ptsEvaluate the concept of the efficient frontier and how it may be used to determine an asset portfolio for an investor.ExemplaryEvaluated the concept of the efficient frontier and how it may be used to determine an asset portfolio for an investor. 16.5 to >14.85 ptsCompetentEvaluated the concept of the efficient frontier and how it may be used to determine an asset portfolio for an investor, but the evaluation lacks details and clarity. 14.85 to >13.19 ptsNeeds ImprovementEvaluated the concept of the efficient frontier and how it may be used to determine an asset portfolio for an investor, but the evaluation is incomplete. 13.19 to >11.55 ptsUnacceptableDid not evaluate the concept of the efficient frontier and how it may be used to determine an asset portfolio for an investor. 11.55 to >0 pts/16.5 ptsDevelop an argument for a diversified portfolio investment.ExemplaryDeveloped an argument for a diversified portfolio investment. 16.5 to >14.85 ptsCompetentDeveloped an argument for a diversified portfolio investment, but the argument lacks details and clarity. 14.85 to >13.19 ptsNeeds ImprovementDeveloped an argument for a diversified portfolio investment, but the argument is incomplete. 13.19 to >11.55 ptsUnacceptableDid not develop an argument for a diversified portfolio investment. 11.55 to >0 pts/16.5 ptsRecommend an ideal portfolio mix to maximize the rate of return for the short term and long term based on the economic outlook for the next year.ExemplaryRecommended an ideal portfolio mix to maximize the rate of return for the short term and long term based on the economic outlook for the next year. 16.5 to >14.85 ptsCompetentRecommended an ideal portfolio mix to maximize the rate of return for the short term and long term based on the economic outlook for the next year, but the recommendation lacks details and clarity. 14.85 to >13.19 ptsNeeds ImprovementRecommended an ideal portfolio mix to maximize the rate of return for the short term and long term based on the economic outlook for the next year, but the recommendation is incomplete. 13.19 to >11.55 ptsUnacceptableDid not recommend an ideal portfolio mix to maximize the rate of return for the short term and long term based on the economic outlook for the next year. 11.55 to >0 pts/16.5 ptsDevelop a recommendation that meets the required number of pages, is clear, includes appropriate writing mechanics, and follows SWS formatting requirements.ExemplaryWriting meets the required number of pages, writing has very few spelling, punctuation, and grammatical errors, few fragments, comma splices, and run-ons. 0–2 errors present. 5.5 to >4.95 ptsCompetentWriting meets the required number of pages, writing has spelling, punctuation, and grammatical errors that are distracting in a few places; few fragments, comma splices, and run-ons. 3–4 errors present. 4.95 to >4.39 ptsNeeds ImprovementWriting does not meet the required number of pages, writing has spelling, punctuation, and grammatical errors that are distracting in some places. 5–6 errors present. 4.39 to >3.85 ptsUnacceptableWriting does not meet or it exceeded the required number of pages, has spelling, punctuation, and grammatical errors, fragments, comma splices and run-ons that distract from the message. More than six errors present. 3.85 to >0 pts/5.5 ptsInclude four required quality academic resources.ExemplaryIncluded four required quality academic resources. 5.5 to >4.95 ptsCompetentIncluded two to three academic resources, but the resources were not of a quality nature. 4.95 to >4.39 ptsNeeds ImprovementIncluded one quality academic resource. 4.39 to >3.85 ptsUnacceptableResources were not provided, or the resources were not of a quality nature. 3.85 to >0 pts/5.5 pts