Essays on Different Investment Portfolio and Decisions Undertaken by Investors Case Study

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The paper "Different Investment Portfolio and Decisions Undertaken by Investorsis a good example of a finance and accounting case study.   In the recent past, the financial markets have developed and may be attributed to financial literacy and technological advancement. The investors have tools and capacities to invest in any financial instrument such as the stocks, and bonds. However, each of these different investments has respective risks and benefits. The paper employs standard deviation and moving average to analyze different investment portfolio and decisions undertaken by investors. The investment in question is SPDR Barclays Cptl Shrt Term Corp Bd ETF, Acadia Realty Trust: (NYSE: AKR) and Target Corporation. The Company Profiles SPDR Barclays Cptl Short Term Corp Bd ETF The SPDR is a Bond ETF aims to provide investment results before expenses and fees that corresponds with the yield performance and price of 1-3 year Corporate Bond Index.

The inception of the bond was 2009 and it is reviewed and presented monthly to reflect the needs and requirements of the investors. The number of shares as of 2016 is 150 million; the share price is $30.39 while the total net asset is $4,625.24 million. Acadia Realty Trust: (NYSE: AKR) Acadia Realty Trust is located in New York and is a fully self-managed, integrated and self-administered equity REIT.

The focus of Acadia Reality Trust is on the management, redevelopment, acquisition and ownership of mixed-use and retail properties. The targeted environments including community shopping centers and neighbourhood that are located in suburban markets and dense locations in major metropolitan areas. Target Corporation TGT operates in the retail industry and it is a public company. It was established in 1902 and it has more than 1,805 locations in the United States of America.

The total asset in 2014 was US$ 41.404 billion while the revenue generated within the period was US$ 72.618 billion. The company operates in the S& P 500 Component in the New York Stock Exchange. Literature Review Van Rooij, M., Lusardi, A. and Alessie, R., 2011. Financial literacy and stock market participation. Journal of Financial Economics, 101(2), pp. 449-472. The authors developed special models for De Nederlandsche Bank (DNB) Household Survey with the purpose of measuring financial literacy and analyse its relationship with customers participation ion the stock market.

The results indicated that most respondents had a basic understanding when it came to financial knowledge and understood concepts such as time value of money, inflation, and interest compounding. However, most customers do not understand or lack knowledge beyond these limits. For example, the respondents do not understand the relationship between interest rates and bond prices, the difference between stocks and bonds and components of risk diversification. Furthermore, the results indicate that the level of financial literacy affects decision making on financial matters. Baur, D.G.

and Lucey, B.M. , 2010. Is gold a hedge or a safe haven? An analysis of stocks, bonds and gold. Financial Review, 45(2), pp. 217-229. Different types of investments exist and one of them is the use of gold as a hedge. The authors wanted to determine whether gold is uncorrelated with bonds or stocks on average or whether it is a safe haven. Moreover, the authors wanted to determine the significance of gold as a hedge in instances of a market crash. The authors collected data and studied time-varying relations and constant relations between German, UK and US bond and returns against gold returns.

The research also aimed at determining gold as a safe haven and hedge. The authors found out that gold is a hedge compared to stocks and a safe haven in extreme conditions and situations. However, through portfolio analyses the aspect of safe haven in gold is short-lived. Understanding such relationships and risks in investment is important in determining the appropriate investment strategy.


Arouri, M.E.H. and Rault, C., 2012. Oil prices and stock markets in GCC countries: empirical evidence from panel analysis. International Journal of Finance & Economics, 17(3), pp. 242-253.

Baur, D.G. and Lucey, B.M., 2010. Is gold a hedge or a safe haven? An analysis of stocks, bonds and gold. Financial Review, 45(2), pp. 217-229.

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Van Rooij, M., Lusardi, A. and Alessie, R., 2011. Financial literacy and stock market participation. Journal of Financial Economics, 101(2), pp.449-472.

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