Design a well customized asset allocation model for the client you have chosen for your final project from the Final Project Part I Document, and briefly explain the asset classification and diversification logic. Summarize your security selection process. Discuss how the portfolio would likely achieve the client's overall goal and maximizes returns at the lowest risk possible based on the client's profile #2. How does your security setup, composition, or portfolio compare to market performance? Finally, explain the various risks inherent in the investment types and illustrate numerically the various portfolio measures including variance, standard deviation, expected return, beta, covariance, and correlations.
Note: This is an exercise to test your knowledge of asset allocation and diversification elements.
Organizational Analysis & Design Plan: Project Description and Scoring Guide FIN 450 Module Three Short Paper Guidelines and Rubric Design a well customized asset allocation model for the client you have chosen for your final project from the Final Project Part I Guidelines and Rubric document, and briefly explain the asset classification and diversification logic. Summarize your security selection process. Discuss how the portfolio would likely achieve the client’s overall goal and maximizes returns at the lowest risk possible based on the client’s profile in the Final Project Part I Guidelines and Rubric document. How does your security setup, composition, or portfolio compare to market performance? Finally, explain the various risks inherent in the investment types and illustrate numerically the various portfolio measures including variance, standard deviation, expected return, beta, covariance, and correlations. To complete this assignment, refer to the prompt in the Final Project Part I Guidelines and Rubric document. Note: This is not the portfolio due in Module Seven; it is an exercise to test your knowledge on asset allocation and diversification elements. Guidelines for Submission: Submit assignment as a Word document that is 2-4 pages in length with double spacing, 12-point Times New Roman font, and one-inch margins. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Asset Allocation Meets “Proficient” criteria and the asset allocation model is supported with scholarly evidence Designs a well customized asset allocation and model for the client selected for the final project Designs an asset allocation model but the model could have been further customized to better suit the needs and financial background of the client Does not design an asset allocation model 13 Asset Classification and Diversification Meets “Proficient” criteria and explains the logic behind the asset classification and diversification and how each will optimize the client’s investment Explains the asset classification and diversification logic Explains the asset classification and diversification logic but the explanation requires more detail and client research Does not explain the asset classification and diversification logic 13 Security Selection Process Meets “Proficient” criteria and the process will optimize the client’s investment Summarizes the security selection process Summarizes the security selection process but more detail and client research is required Does not summarize the security selection process 13 Client’s Goal Meets “Proficient” criteria and the explanation is articulated with financial evidence and terminology Explains how the portfolio would likely achieve the client’s overall goal Explains how the portfolio would likely achieve most of the client’s goals but more client based research is required Does not explain how the portfolio would likely achieve any of the client’s goals 13 Security Setup Meets “Proficient” criteria and the summary of the security setup/composition/portfolio is substantiated by market research and will assist in optimizing the client’s investment Summarizes how the security setup/composition/ portfolio compares to market performance Briefly summarizes how the security setup /composition/ portfolio compares to market performance but the market performance is assumed and requires more market research Does not summarize how the security setup/composition/ portfolio compares to market performance 13 Risks Meets “Proficient” criteria and the risks are relative to the investment types of the client Explains the various risks inherent in the investment types Explains risks inherent in the investment types but more detail and more knowledge of the client’s background is required Does not explain the risks inherent in the investment types 13 Portfolio Measures Meets “Proficient” criteria and the illustration is articulated with financial evidence and terminology Illustrates the various portfolio measures including variance, standard deviation, expected return, beta, covariance, and correlations Briefly explains the portfolio measures but submission lacks detail and relevance to the client Does not explain the portfolio measures 13 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 9 Total 100%