Risk Versus Return Principle in Investment Decision

The assignment is about the risk versus return principle in finance and how it affects investment decisions. It requires students to explain the importance of this principle, compare the risk and return of at least five different investments in Fiji, and conduct a risk and return analysis of two local companies listed on the stock market.

INSTRUCTIONS
Question
“It’s important to be aware that investing is not a risk-free strategy and there’s always a chance you
could lose money or not make as much as you expected.
All investments carry some risk due to factors such as inflation, tax, economic downturns and drops in
particular markets.
Different types of investments carry different levels of investment risk, and also different returns. As a
general rule, the larger the potential investment return, the higher the investment risk.” (Commsec)
Look closely at the Risk versus return principle of finance and
a) explain in detail its importance towards an investment decision.
b) choose at least 5 different investments in Fiji and compare its risk and return and critically evaluate
the differences in your findings.
c) Choose at least 2 local companies listed on the Stock market and extract 8-10 years of data and
carry out a risk and return analysis of these companies, particularly looking at their investment
types over these years. Compare and contrast the results obtained.

Note:
i. Provide a complete reference list which should be prepared in accordance with one of the
internationally accepted referencing standards.
ii. A turn-it-in facility will be provided on Moodle for preliminary plagiarism checking as
well as final project submission drop box. A maximum of 30% similarity index is
allowed.
iii. The assessment criteria sheet is provided for understanding on how the marks will be
allocated. Please attach it with your assignment.
iv. The assignment must have a Title page, Introduction, Table of Contents, Body-Findings
and Discussion, Conclusion and Bibliography.
vi. It should be typed in Times New Roman with font size 12 and 1.5 line spaced.
vii. Please ensure that the assignment does not exceed 10 pages and should not include any
unnecessary information.
THE END

ASSESSMENT CRITERIA
FIN501: FUNDAMENTALS OF FINANCE
Assessment Criteria – Assignment
Student Name Student Number
1
Number Component Full mark Gained mark Comments
1 Introduction 2
a Justification 4
Investment 1 4
Investment 2 4
b Investment 3 4
Investment 4 4
Investment 5 4
Co. 1 analysis 10
c
Co. 2 analysis 10
Conclusion 2
Referencing 2
Total 50
Best of Luck