Investment Decision Assessment 2022

ASSESSMENT
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Table of Contents
Part 1..........................................................................................................................................3
Part 2..........................................................................................................................................5
Part 3..........................................................................................................................................7
Part 4..........................................................................................................................................8
Reference Lists...........................................................................................................................9
Appendices...............................................................................................................................10
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Executive Summary
This study is based on the investment decision of Mr. Cass who will retire in 25 years and
want a secure option for investment which can act as retirement plan in his future. The MVA
analysis is done with the data and his income is also calculated according to the increasing
inflation rate. The best recommendation has been provided out of the other investment
options.
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Part 1
Introduction
In this assessment, the analysis have been made to evaluate the investment portfolio for MR.
Class for his return on investment. This report divulges that Mr. Cass is a worker and he
wants to invest funds for his retirement and on the basis of the MVA analysis. However, this
analysis has been used to identify the best investment options available for him
Finding analysis
After assessing the case, it has been found that Mr. Cass is a worker who earns $50000 per
annum and wants to invest in asset allocation. The place of investment is unknown so it
becomes difficult to analyze the return. However, expected return, Mr Cass expects 5-6%
return in his investment. If Mr. Cass is from a developed country then the monthly cash return
after investment will be higher than return available on the investment in developing
countries (Hoye et al. 2018). This has been found out that there are different kind of
portfolios based on which the overall market can operates. Mr. Cass therefore could invest in
this different kind of portfolio. However, if the investment could bring some profit to him
then the share price value will also be surged. According to researchers a MVA analysis, it
has been found that there will be surge in the invested share price. These different portfolios
are therefore Baa, Aaa, Us eq. as well as Em eq in this situation. The portfolio for commodity
is analyzed as 14% in 2017 which will be expected to change by 4.41%. MVA analysis faces
huge challenge with large number of data calculation. However the portfolio variance is
0.182205% which is computed by using the MVA analysis method.
Recommendation
The investment capital of the Mr. Cass would be restricted with the capital as he would be
able to invest less capital for his investment due to his limited income. However, the
suggested investment option for him would be the option giving higher return with the less
risk. Mr. Cass cannot invest in property as the requirement of funds will be higher so the
commodity market in developing countries would be the best option for investment for Mr.
Cass.
Conclusion
Mr. Cass as a middle class individual wants to invest for retirement but does not have proper
knowledge about the financial management. The recommendation has been provided to him
by analyzing various factors. In this, interpretation of data has been done and the average rate
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