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Sola Bamisile’s Portfolio

Sola Bamisile’s Portfolio. By: Olayemi Bamisile. Agenda. Client Background Purpose of Investing The portfolio Bonds, long & short positions Market anomaly Behavioral finance Results of Portfolio Bibliography. Client Background. 64 years Old Certified Nursing Assistant

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Sola Bamisile’s Portfolio

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  1. Sola Bamisile’s Portfolio By: Olayemi Bamisile

  2. Agenda • Client Background • Purpose of Investing • The portfolio • Bonds, long & short positions • Market anomaly • Behavioral finance • Results of Portfolio • Bibliography

  3. Client Background • 64 years Old • Certified Nursing Assistant • Makes $32,000 per year • Assets: Retirement Savings

  4. Purpose of Investing • Opportunity to invest five million was given to the client; any gains made are to be kept by the client. • The client will use gains to replenish retirement savings

  5. The Portfolio • Consisted of: Bonds, Options, Futures, Mutual funds, Long and Short positions • Forecasted Asset Allocation: 80% stocks, 15% commodities and 5% bonds • Strategy : Tactical Asset Allocation Market Anomaly: Mergers & Acquisitions

  6. Long & Short Positions, Bonds • Long Positions • Cumulative Starting Market Value $5,634,234.72 • Cumulative Market Value Ending $5,676,990.58 • Short Positions • Cumulative Starting Market Value $3,462,257.00 • Cumulative Ending Market Value $3,418,095.00 • Bonds • UNITED AIR LINES INC • currently earning 0%

  7. Market Anomaly • Mergers & Acquisitions • Used bid announcements from the Wall Street Journal to justify Long positions on target firms • Best Investment Based On Anomaly • Cisco Systems Incorporated 4.05% abnormal return (HPR)

  8. Behavioral Finance

  9. Results • Asset Allocation: 96% Stocks, 3% Commodities, 1% Bonds • Portfolio High: $5,089,072 1.78% HPR • Low: $4,971,781 -0.56% HPR • Best Investment • Long Position: Nokia Corporation 29.56 HPR or 562% Annually • Advice Trade Actively • Actual Return 5.49% annually ($5,065,612) • S&P 500 4.95% p.a • Nasdaq -19.24% p.a

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