Investments Assignment Help & Online Tutoring

Return is the gain or loss on an investment, usually shown as a percentage. Risk is the uncertainty around that return, often measured by standard deviation. In most models, investors expect a higher return for taking more risk, which underpins almost all investment theory.

Diversification means holding several assets so that poor performance in one is offset by others. It works best when returns are not perfectly correlated. It reduces specific risk, but it cannot remove market risk, which affects all assets and is measured by beta.

Systematic risk, also called market risk, affects the whole market and cannot be diversified away. Unsystematic risk is specific to a company or industry and can be reduced by diversification. CAPM assumes investors are only rewarded for systematic risk, measured by beta.

The capital asset pricing model states that required return equals the risk-free rate plus beta multiplied by the market risk premium. The market risk premium is the expected market return minus the risk-free rate. Be careful to subtract the risk-free rate before multiplying by beta.

Beta measures how much an asset's return tends to move with the market. A beta of 1 moves with the market, above 1 is more volatile, and below 1 less volatile. A negative beta would imply movement in the opposite direction to the market.

A bond's price is the present value of its future coupons plus the present value of its redemption value, discounted at the required yield. If the yield is above the coupon rate, the bond trades below par. For semi-annual coupons, halve the rate and double the periods.

The Gordon growth model values a share as next year's dividend divided by the required return minus the growth rate. It assumes dividends grow at a constant rate forever and that the required return exceeds that growth rate, otherwise the formula gives a meaningless result.

It proposes that asset prices reflect available information, so it is difficult to earn consistently higher returns than the market after adjusting for risk. It is usually described in weak, semi-strong and strong forms, each covering a wider set of information.

The capital market line plots expected return against total risk for efficient portfolios that combine the market portfolio with risk-free borrowing or lending. The security market line plots expected return against beta and applies to any individual asset or portfolio.

The Sharpe ratio measures return above the risk-free rate per unit of total risk, calculated as excess return divided by standard deviation. A higher ratio suggests better risk-adjusted performance. It is often compared with the Treynor ratio, which uses beta instead of standard deviation.

Portfolio return is the weighted average of the individual expected returns. Portfolio risk is not a simple weighted average, because it depends on how the assets move together, so the calculation uses variances, weights and either covariance or correlation between the assets.

Correlation measures how two assets move together, on a scale from −1 to +1. Lower correlation gives greater diversification benefit, because losses in one asset are more likely to be offset by the other. With a correlation of +1, there is no reduction in risk.

No. This is academic tutoring to help you understand investment theory and complete your coursework. It is not a recommendation to buy or sell any investment. For decisions about your own money, speak to a qualified, regulated financial adviser in your country.

Write the formula first, then substitute the values, then give the answer with units. Keep percentages and decimals consistent throughout, and round only at the end. Add one sentence interpreting the result, because many marking schemes reward interpretation as well as the calculation.

Yes. A one-to-one tutor can explain the models, work through risk, return and valuation problems and check your method and interpretation. You complete your own assessed work in line with your university's rules. Lessons are online and can follow your own course material.