Category: Investing and financial markets

This is a group course work and you are completely PERSON 2 section only which is around 700 words. This is the breakdown of the company and the requirements for each person and you will only complete PERSON 2 tasks. I require working shown with the calculations ! I require full access of references used and the data must be used from approved sources which will be provided in the SHARED RESPONSIBILITIES section all the way down. As well as note that all calculations must be included in the appendix with formulas shown. I will write below what the tasks are, AGAIN you are only completely PERSON 2/QUESTION 2. HSBC Investment Management Coursework Task Allocation (3000 words) We are analysing HSBC. Below is the agreed division of work to ensure equal contribution and alignment with the marking criteria. Person 1 Q1: Top-Down Market & Sector Analysis (Approx. 750 words 30%) Focus: Macroeconomic environment, banking sector, and justification for HSBC. Tasks: Analyse GDP, inflation and interest rates (20242025), mainly UK and relevant Asian markets. Review government and corporate bond market trends. Discuss banking sector performance and how interest rates affect banks. Provide rationale for selecting HSBC (industry position, strengths, risks/opportunities). Include 34 supporting graphs. Person 2 Q2: Company Fundamentals & Financial Health (Approx. 700750 words Part of 40%) Focus: Financial statements and credit assessment. Tasks: Analyse capital structure (debt/equity, leverage ratios). Review liquidity ratios. Assess profitability (ROE, ROA, margins, NIM). Evaluate cash flow and cash-flow-to-debt. Provide judgement on HSBCs creditworthiness as a bond issuer. Include ratio tables and clear interpretation (not just numbers). Person 3 Q3: Equity Valuation & Market Performance (Approx. 700750 words Part of 40%) Focus: Share performance and valuation. Tasks: Compare HSBC share price with relevant sector index (last 2 years). Analyse P/E, EPS, dividends, market cap and sales forecasts. Calculate beta and expected return using CAPM. Interpret whether HSBC is overvalued, undervalued, or fairly priced. Include valuation tables and CAPM calculation (formula shown in appendix). Person 4 Q4: Investment Recommendation, ESG & Final Editing (Approx. 600700 words + Executive Summary) Focus: Final judgement and sustainability assessment. Tasks: Provide clear BUY / HOLD / SELL recommendation (12-month outlook). Base recommendation on Q2 financial analysis and Q3 valuation/CAPM. Assess HSBCs ESG profile and alignment with net-zero targets. Comment on suitability for an ESG-focused investor. Write executive summary (250300 words). Ensure formatting, Harvard referencing, table of contents, index of graphs, and final structure are correct. Shared Responsibilities: All data must come from approved sources (Bloomberg preferred, annual reports, FRED, Bank of England, Yahoo Finance, Google Scholar). All calculations must be included in the appendix with formulas shown. One final group review before submission. Only one person submits via Turnitin with all names on the cover page. This keeps the workload balanced and aligned with the marking weights.

Write an essay of 2500 words (around 8 pages)

on your own

,

i.e.

as an

individual

.

Taking cognisance of what you have learnt

/are learning

in Units 1,

2 and 3,

and reflecting on President

Ramaphosas S

ONA

address,

d

iscuss how the various role players in the economy can

each

make a

contribution in the next 5 years t

hat will

effectively overcome the inherent structural issues facing the

SA economy (slow economic growth, labour market rigidity and high unemployment rates, low quality

of education, infrastructural backlogs, crime and corruption) and

place it in a better position to

attract

investment

and

to

ensure

the

SA economy

is

able

to start achieving

the following:

–

reliable growth figures of

around

5% pa

;

–

full

employment

;

-environment

in terms of training, preparation and resources

(especially capital)

that will

promote

entrepreneurial skills

and

spirit

, and

, finally,

promote industries in which we have a comparative

advantage, one of which might be

to

add value to

the

raw materials

that are

mostly

export

ed

to other

nations

and

who

currently

benefit from

do

ing

just that

.

T

here are numerous articles and opinions available that you can

source

.

I have posted

a

few

of these

on B

B

as a guide

. Please dont feel limited

to

these ideas

only

but please ensure any other resources

you might use/consult are fairly current

.

The SA

Ec

onomy is dynamic and thus going through changes

continuously, e.g. consulting an article from a year or two ago will

not

be suitable/acceptable.

I am

looking for originality

as well

,

and you will be rewarded

if you provide your own original ideas

.

It is important to give due consideration to the structure of your essay

, i.e.

introduction, body with

your

discussion

, conclusion, and then, finally and very importantly, a comprehensive list of references

(please use an accepted

system

of referencing

like the Harvard

Referencing System

)

.

Y

ou might like to

consider

a

structure

similar to the following

:

–

Introduction

–

The various stakeholders/role players

–

Structural issues facing the SA economy

–

Economic goals necessary to achieve long

–

term growth

–

Various sources of capital

that

might be

available

–

Strategy necessary to achieve the

proposed

goals

–

The

potential outcome

for the SA economy and its people

if successfully implemented

–

Conclusion

–

References

A

a

stronger currency with

low

er

interest

and

inflation rates

that are

comparable

with

competing

nations

.

In your discussion

you might like to also consider the importance of

SA

s ability to

compet

e

internationally

,

reduc

e

consumption

and

increas

e

savings

and

investment

,

provid

e

the

right

environment

in terms of training, preparation and resources

(especially capital)

that will

promote

entrepreneurial skills

and

spirit

, and

, finally,

promote industries in which we have a comparative

advantage, one of which might be

to

add value to

the

raw materials

that are

mostly

export

ed

to other

nations

and

who

currently

benefit from

do

ing

just that

.

T

here are numerous articles and opinions available that you can

source

.

I have posted

a

few

of these

on B

B

as a guide

. Please dont feel limited

to

these ideas

only

but please ensure any other resources

you might use/consult are fairly current

.

The SA

Ec

onomy is dynamic and thus going through changes

continuously, e.g. consulting an article from a year or two ago will

not

be suitable/acceptable.

I am

looking for originality

as well

,

and you will be rewarded

if you provide your own original ideas

.

It is important to give due consideration to the structure of your essay

, i.e.

introduction, body with

your

discussion

, conclusion, and then, finally and very importantly, a comprehensive list of references

(please use an accepted

system

of referencing

like the Harvard

Referencing System

)

.

Y

ou might like to

consider

a

structure

similar to the following

:

–

Introduction

–

The various stakeholders/role players

–

Structural issues facing the SA economy

–

Economic goals necessary to achieve long

–

term growth

–

Various sources of capital

that

might be

available

–

Strategy necessary to achieve the

proposed

goals

–

The

potential outcome

for the SA economy and its people

if successfully implemented

–

Conclusion

–

References

Ratio analysis is a simple but powerful tool to evaluate various aspects of a companys financial health. Ratios help to analyze business performance and success, such as its profitability, operational efficiency, liquidity, and much more.

Ratios can be calculated by dividing two line items from a companys financial statements. Each ratio provides information about a different aspect of a companys financial health.

For all three companies, conduct a ratio analysis to evaluate financial performance and to make recommendations for improvement. For your analysis you will be looking at both trends for each company and comparing the companies against each other (benchmarking). Please analyze the following ratios:

• Profitability ratios: Calculate and analyze the gross profit margin and net profit margin for 2021 and 2022. Based on your analysis, provide 23 recommendations for company improvement and growth
• Liquidity: Calculate and analyze the current ratio and quick ratio for 2021 and 2022. Based on your analysis, provide 23 recommendations for company improvement and growth.
• Solvency: Calculate and analyze the debt-to-assets and debt-to-equity ratio for 2021 and 2022. Based on your analysis, provide 23 recommendations for company improvement and growth.

Please use the following financial statements for your IP:

Your final submission should consist of a 3-5-page Word document, along with the Excel ratio analysis that you completed for your chosen company.

Download the Word document template and the company template you chose to help you with this assignment:

One of the critical roles of a financial analyst is to provide insight into the performance of an organization using financial models and tools. In this Individual Project (IP), you will focus on the use of a simple but effective tool, a horizontal analysis, to provide insight into the financial performance of a chosen company.

Publicly traded companies publish annual reports to educate current and potential stockholders about company activities and performance. They include information about the company and significant financial statements, including the balance sheet, income statement, and cash flow statement, offering a snapshot of the company’s financial performance over the last year.

Analyzing financial performance is critical to determine companys financial health.

Choose 1 of the companies below, and review its financial statements and supplementary data from the annual report:

Conduct a full horizontal analysis on the income statement and answer the following questions:

• After conducting the analysis, look through the trends. What do you notice about specific accounts? You are looking for anything that looks like it might be worthy of investigation. When analyzing Net Sales, what changes did you notice? What are some possible reasons for this change? How might you investigate the cause of the changes?
• When analyzing Operating Expenses, what changes did you notice? What are some possible reasons for this change?
• Now that you have conducted a horizontal analysis, discuss how investors might interpret the trends you have observed?

Your final submission should consist of a 3-5-page Word document, along with the Excel trend analysis that you completed for your chosen company.

For Broadcom (AVGO)

1. What is the companys competitive advantage and how sustainable is it? Use Porters five forces to answer this question.

2. What is the companys strategy for sustaining this competitive advantage? In your answer, describe the five tests every good strategy should possess: a distinct value proposition, a tailored value chain, trade-offs different than rivals, fit across the value chain, continuity over time.

Respond in 250 words. Using Apples sensitivity analysis and VAR disclosures to quantify risk. The $2.4 billion fair value impact from a 100-basis-point move is a great example of why interest rate risk matters even for a cash-rich company. If you had to prioritize, which risk would most directly affect Apples free cash flow in the next 12 months: rate sensitivity, FX volatility, or regulatory penalties?

Please read and think about the attached case study.

Provide written individual contributions such as your analysis, critical thinking, and engagement in discussions.

Please read and think about the attached case study.

Provide written individual contributions such as your analysis, critical thinking, and engagement in discussions.

Required Areas of Discussion – Definition of financial markets, including money markets, capital markets, primary markets, and secondary markets. – Instruments traded in money and capital markets, with examples from UAE financial markets. – Main participants and key players in financial markets, with reference to the UAE context. – Practical challenges faced by financial market participants. – Importance of financial markets for economic growth, efficiency, and stability. These areas collectively examine how financial markets are structured, how they operate in practice, and how effectively they contribute to economic development and stability. Empirical / Quantitative Requirement Students must support their analysis with quantitative or empirical evidence, such as financial indicators, statistics, or original tables or figures created by the student. Advanced econometric techniques are not required; emphasis is placed on interpretation and analytical insight. Appendix: Structure for the Research Paper Cover Page (not included in word count) – Module name and code – Assignment title – Student ID – Word count Executive Summary ( 200250 words) – Brief overview of the topic and its relevance – Key arguments or findings – Summary of main conclusions Introduction ( 250300 words) – Background and context of financial markets – Rationale for studying financial markets in todays economy – Purpose and scope of the paper – Outline of the paper structure Overview of Financial Markets ( 500600 words) – Definition of financial markets – Explanation of money markets, capital markets, primary markets, and secondary markets – Link between different markets and the economy Financial Market Instruments and Participants ( 500600 words) – Key instruments traded in money and capital markets – Main market participants – Examples from UAE financial markets Empirical / Quantitative Evidence ( 400500 words) – Presentation of selected data or indicators – At least one original table or figure – Interpretation of results and implications Challenges Faced by Financial Market Participants ( 300400 words) – Liquidity constraints – Market volatility – Information asymmetry – Regulatory or operational challenges Importance of Financial Markets for the Economy ( 300400 words) – Role in capital allocation and investment – Contribution to economic growth and stability – Relevance to the UAE economic context Conclusion ( 200250 words) – Summary of key arguments – Reflection on findings – Policy or practical implications References (not included in word count) – Academic journal articles – Official reports and data sources – Proper referencing style

Required Areas of Discussion – Definition of financial markets, including money markets, capital markets, primary markets, and secondary markets. – Instruments traded in money and capital markets, with examples from UAE financial markets. – Main participants and key players in financial markets, with reference to the UAE context. – Practical challenges faced by financial market participants. – Importance of financial markets for economic growth, efficiency, and stability. These areas collectively examine how financial markets are structured, how they operate in practice, and how effectively they contribute to economic development and stability. Empirical / Quantitative Requirement Students must support their analysis with quantitative or empirical evidence, such as financial indicators, statistics, or original tables or figures created by the student. Advanced econometric techniques are not required; emphasis is placed on interpretation and analytical insight. Appendix: Structure for the Research Paper Cover Page (not included in word count) – Module name and code – Assignment title – Student ID – Word count Executive Summary ( 200250 words) – Brief overview of the topic and its relevance – Key arguments or findings – Summary of main conclusions Introduction ( 250300 words) – Background and context of financial markets – Rationale for studying financial markets in todays economy – Purpose and scope of the paper – Outline of the paper structure Overview of Financial Markets ( 500600 words) – Definition of financial markets – Explanation of money markets, capital markets, primary markets, and secondary markets – Link between different markets and the economy Financial Market Instruments and Participants ( 500600 words) – Key instruments traded in money and capital markets – Main market participants – Examples from UAE financial markets Empirical / Quantitative Evidence ( 400500 words) – Presentation of selected data or indicators – At least one original table or figure – Interpretation of results and implications Challenges Faced by Financial Market Participants ( 300400 words) – Liquidity constraints – Market volatility – Information asymmetry – Regulatory or operational challenges Importance of Financial Markets for the Economy ( 300400 words) – Role in capital allocation and investment – Contribution to economic growth and stability – Relevance to the UAE economic context Conclusion ( 200250 words) – Summary of key arguments – Reflection on findings – Policy or practical implications References (not included in word count) – Academic journal articles – Official reports and data sources – Proper referencing style