Stockholm School of Economics
Advanced Investment Management-4106.
Andrei Simonov
The purpose of a case is to challenge you to identify the key issues of the decision situation at hand. Here are a few pointers:
Describe and comment on shortfall as measure of risk.
Analyze the proposals in front of Ms. Adams.
What is the cost of insuring against shortfall?
What are additional risks that are not taken into account by anonymous New York securities firm?
Please, do not answer these questions one by one. Instead, use them only as ways to prime your own analysis. You may then organize and draft your results in whichever way you see fit. If you feel that you have to make any assumptions, please do it by stating them clearly in your report. I expect the report to be no longer than 4 pages + Excel spreadsheets (if necessary). I would appreciate 12pt font.
References:
Bodie, Zvi. On
the risk of stocks in the long run Financial
Analysts Journal. Charlottesville: May/Jun 1995. Vol. 51, Iss. 3; p. 18
(5 pages)