FNCE 3151: Project Proposal for a Hypothetical Portfolio

This project proposal for FNCE 3151 outlines the creation of a hypothetical investment portfolio for a risk-averse client, Ms. Raven, a school teacher. The student analyzes Ms. Raven's risk tolerance, identifying her preference for static returns and aversion to risk, and proposes a portfolio designed to meet her needs. The project includes the selection of ten Canadian stocks, such as Imperial Bank of Canada, Nutrien Ltd., and Toronto-Dominion Bank, along with other investment options like TD e-Series Funds and Brookfield Property Partners, explaining the rationale behind each choice and its suitability for a risk-averse investor. The proposal also addresses the importance of investment tools and resources, including market data and news sources, to make informed decisions. The student also discusses the potential impact of behavioral biases on Ms. Raven's investment choices, and how to mitigate those biases to better serve the client. The project aims to apply the course concepts to real-world investment scenarios, emphasizing the importance of diversification and risk management. The assignment received a poor grade because the professor found inconsistencies in the analysis, a lack of connection between stock selections and risk aversion, and vague explanations.

I am working for a client who is a school teacher. Ms. Raven is a simple and fun-loving woman.
When I met her for the first time, I understood she is a little reserved but a practical person. She
likes to stay in boundaries with the comfort of exploration within it. I realized by her way of life
and the way she explained to herself that she is a risk-averse person. The aptitude to explore and
the risk was quite low, so I planned to ask her directly this question. She was quite sure that she
wants a static return and cannot risk her hard-earned money. I too respect her thoughts and
planned to brief her on her risk tolerance. I showed that under specific conditions, the investor's
portfolio assignment decision could be considered as a two-stage method. Regardless, the higher
risk of the investment may trouble the investors as well.
The investor is endeavored to be risk-averse and to go about just as they pick among portfolios
dependent on the most outrageous foreseen utility. The ideal portfolio of any investor must be
legitimate and not accumulation with the identical, or higher expected return has a lower
dispersing of execution. A risky investment will allow solitary investors to persevere through the
setbacks. Along these lines, the risk-averse investors may pick the sans risk investments, for
instance, Treasury bills. She has shown that investors were taking a shot at her "Security First"
rule. It should support the extent of the wealth expected portfolio return (over the disaster level)
to the standard deviation of the appearance on the portfolio. (Faulkenberry)
Ms. Raven needs to investigate every one of her roads, so I attempted to structure a portfolio that
is well-suited for her risk resilience with various ventures. This will support Ms. Raven to
assorted her risk. (Klarman)
1. Imperial Bank of Canada (TSX: RY): McClelland may work at RBC, yet it's not why
she picked this bank stock. It has a blasting worldwide capital markets business and a

robust retail division. RBC will, in general, develop profit quicker than different banks,
she says, and at multiple times income and with a 4% yield, it's difficult to leave this
vigorous activity behind.
2. Nutrien Ltd. (TSX: NTR): The recently consolidated organization had announced it
could discover $500 million in cooperative energies. However, it has since expanded that
by $100 million and it's as of now in front of the timetable. Investors should be tolerant,
yet with a 3.4% yield, they're getting paid to pause.
3. Toronto-Dominion Bank (TSX: TD): It's the least expensive since mid-2009. However,
the organization still makes hills of money, developing profit per offer and net gain by
9.2% and 7.8%, respectively, in 2018. It likewise posted a 14.6% profit for value and has
a 3.95% profit yield.
4. Saputo Inc. (TSX: SAP): As indicated by the organization, it transforms 10 billion liters
of milk into cheddar consistently. There's space to develop, through capital additions and
a 1.7% yield, it should return 10% every year throughout the following couple of years.
5. CGI Group (TSX: GIB.A): The organization has seen plenty of chances in advanced
change. The organization's natural development, which is extending at somewhere in the
range of 3% and 5% every year.
6. TD e-Series Fund: They have been staples for detached list subsidize investors and
Canadian Couch Potato lovers for two decades. The investment targets for TD Canadian
Bond Index Fund, TD Canadian Index Fund, TD U.S. File Fund, and TD International
Index Fund are on the whole being changed. (Adkins)
7. Badger Daylighting Ltd. (TSX: BAD): Badger fabricates and works trucks that
utilization vacuum removal innovation that helps it burrow around links, pipelines, and

different impediments without causing harm. Alberta Securities Commission found that
the stock has climbed 35% since he made his cases. The income per truck is developing,
while it is overexposed to the vitality part.
8. Brookfield Property Partners (TSX: BPY.UN): A promising land business, which is
exchanging close to record-breaking lows and 21% beneath its January 2018 cost. It
auctions off because rising loan costs will in general hurt profit paying REITs, while a
$15 billion acquisition of GGP Inc.
9. Northland Power Inc. (TSX: NP): The organization will participate in the general
auction when loan fees rise. Right off the bat, it's a noteworthy player in renewables, with
the wind, sun oriented, hydro and warm making up the majority of its business. It's
additionally repurchasing offers, has a free income yield of about 9% and pays a 5.2%
yield.
10. Suncor Energy Inc. (TSX: SU): The Calgary-based vitality monster is engaged with all
aspects of oil creation. Its income is less touchy to the cost of oil. It likewise has a
spotless monetary record, frequently secures modest resources during downturns. It
additionally pays a 3.4% yield.
As an investor, I am going to require data to enable me to comprehend the contributing choices.
Regardless of whether this data is actually based, I have to get to some contributing 'apparatuses
of the exchange,' and regularly, investors are overpowered with the easy decisions. ("Getting
Started With Shares » Australian Investors Association") The AIA doesn't make
recommendations on any things or organizations. It is reliant upon you to do your one of a kind
investigation to make sense of what resources are going to suit your contributing style and

spending plan. Any site should have the choice to outfit you with a vast extent of information.
Routinely the kind of information you can access includes:
Market profundity
Necessary data including Dividend Yield, PE Ratio, Debt Equity Ratio, income, and profit
conjectures, and so forth.
Essential diagramming ability ("5 Popular Investment Apps In Australia | Canstar")
Access to news and declarations for stocks of intrigue
Resource Format Contents
Academic Search
(EBSCOhost)
Online
General substance from magazines, diaries,
and books
MEDLINE (EBSCOhost)
PubMed (OPEN ACCESS)
Online Articles in prescription and wellbeing

Australian Newsstand
(ProQuest)
Online
News and recent development-related
substance from magazines and papers
Business Source Complete
(EBSCOhost)
Online
Business-related substance from magazines
and diaries
Criminal Justice (ProQuest) Online Content from diaries in criminology and law
SocINDEX (EBSCOhost) Online
General substance from magazines, diaries,
and books
References
"National Conference 2019 » Australian Investors Association". Investors.Asn.Au, 2019,
http://www.investors.asn.au/conference/.
"5 Popular Investment Apps In Australia | Canstar". Canstar.Com.Au, 2019,
https://www.canstar.com.au/investor-hub/popular-investment-apps-australia/.

"Correlation Definition | Investopedia". Investopedia, 2013,
http://www.investopedia.com/terms/c/correlation.asp. Accessed 02 Sept 2019.
"Chapter 7. Sources: Choosing The Right Ones – Writing For Success 1St Canadian Edition".
Opentextbc.Ca, 2019, https://opentextbc.ca/writingforsuccess/chapter/chapter-7-sources-
choosing-the-right-ones/.
"Covariance Definition | Investopedia". Investopedia, 2013,
http://www.investopedia.com/terms/c/covariance.asp. Accessed 02 Sept 2019.
"Expected Return, Variance And Standard Deviation Of A Portfolio - Complete Guide To
Corporate Finance | Investopedia". Investopedia, 2012,
http://www.investopedia.com/walkthrough/corporate-finance/4/return-risk/expected-return.aspx.
Accessed 02 Sept 2019.
Adkins, Troy. "A Simplified Approach To Calculating Volatility | Investopedia". Investopedia,
2019, http://www.investopedia.com/articles/basics/09/simplified-measuring-interpreting-
volatility.asp. Accessed 02 Sept 2019.
Faulkenberry, Ken. "Geometric Average Vs. Arithmetic Average For Investment Returns? -
Arbor Asset Allocation Model Portfolio (AAAMP) Value Blog". Arbor Asset Allocation Model
Portfolio (AAAMP) Value Blog, 2013, http://www.arborinvestmentplanner.com/geometric-
average-vs-arithmetic-average-for-investment-returns/. Accessed 02 Sept 2019
Klarman, Seth A. Margin Of Safety. Harperbusiness, 2015.