Assignment: RA Operations Roadmap
Blue Ocean Partners is an investment firm specializing in European equities and fixed income securities. It has invested $1 Billion in below assets as of 1st January 2014.
• 30% in US Equities
• 50% in European Equities
• 20% in European Bonds yielding 4% per year [paid at the end of each quarter]. The bond is priced at 99 and matures on 31st December 2014 at par value.
All European securities are denominated in Euro. The market data as of various points in time from the initial investment is shown in the below table
RA Operations Roadmap
|
Asset
|
1st January 2014
|
31st March 2014
|
30th June 2014
|
30th September 2014
|
31st December 2014
|
|
US Equities Index ($)
|
17000
|
17800
|
17400
|
17900
|
16850
|
|
European Equities (Euro)
|
5000
|
5200
|
5400
|
5900
|
5700
|
|
US $/Euro Exchange Rate
|
1.45
|
1.43
|
1.45
|
1.38
|
1.30
|
• Calculate US Equities Return in US $ terms for the year 2014.
• Calculate European Equities Return in Euro Terms and in US $ Terms for the year 2014
• Calculate European Bonds Total Return (including Coupon)
• Calculate the Portfolio's Total Return in US $ terms.