Human Resources


Write 3 analyses (each of 1,000 words)
Choose between one of two options from the following categories. Answers must cover A, B and C.

Either A1.
Compare and analyse the growth of alternative investment vehicles over the past 10 years with the growth of Equity and Bond markets in the previous 30 years. What have been the positive and negative implications upon the financial markets of the growth of alternative investments (derivatives, money market funds, advanced FX techniques, etc)

Or A2.
Compare and analyse the recent utilization of derivatives (since 2000) with basic options and hedging strategy as undertaken in the 1990’s. Much media criticism was directed towards investment banks (like Lehman Brothers) which were over-extended in terms of leverage, particularly with CDO’s and Credit Default Swaps, why was there this criticism? And develop the case for simplification of the markets to ensure that derivatives are kept within manageable control.

Either B1.
Gold is said to be the forgotten commodity, it has little industrial use and pays no interest or revenue return. Yet it has provided returns in excess of 20% per annum for the past 3 years and is in a 10 year bull market. Analyse the reasons for golds popularity in the current investment climate explaining reasons for its increase and discuss critically whether gold is a commodity or currency.

Or B2.
Commodity markets are some of the most volatile of investment markets. Explain critically what the factors affecting risk and return levels within these markets are and develop an argument for the inclusion of commodities in any well balanced investment portfolio.

Either C1
You are responsible for managing a pension fund aiming for a safe and secure return above the current Bacon and Woodrow UK pension fund index set out the securities you will invest in, their percentage weighting, the respective returns for each...