Essays on Investment Advisor

Abstract

The Madoff Securities scandal was one of the biggest Ponzi schemes to hit America. This essay would examine the Madoff scandal from an audit perspective since it was the complacency (or collusion) of the auditors that encouraged the perpetrator of this scam. While the scam that was pulled by Bernie Madoff, was both large and difficult to spot, its detection also helped expose a crucial flaw that existed in corporate America at the time. This was the lack of regulatory oversight in the Securities business. While one could lay the blame for this scandal on the Regulator, another important ...

Re: Portfolio’s Risk and Return Tradeoff

Profitable Portfolio construction is a difficult task and a task that demands huge knowledge and analysis. More than the monetary investment, it needs investment in the form of research about the past performance, current performance, and the future prospect as well as the research about the industry. Apart from that, balancing the risk and the return stands as the determining factor in the construction of the portfolio. An investor must also simultaneously look for the tradeoff of the risk and return of the entire portfolio rather than of the single stock. As an investment advisor of the company, I ...

Investment Portfolio Statement

Investment Policy Statement: Executive Summary:

Tax ID: A1258122 Current assets: $10,000,000 Return: 7 % 1-yr Loss Limit: (Worst case scenario): - 10 % Purpose of investment policy statement: The main purpose of this investment policy statement is to provide the client with a clear investment plan that ensures maximum returns. It therefore:

Provides an excellent overview of all investment options available to the client

Ensures that all investment options are in line with the client’s needs, wants, and objectives It provides the required means of communication between the client and all other parties involved in the investment plan It meets all the laid out international, state, and federal laws ...

INVESTMENT PORTFOLIO STATEMENT

Investment Policy Statement: Executive Summary: Type of policy: Individual Retirement Investment Policy Tax ID: A1258122 Current assets: $10,000,000 Return: 7 % 1-yr Loss Limit: (Worst case scenario): - 10 % Purpose of investment policy statement: The main purpose of this Investment Policy Statement (IPS) is to provide the client with a clear investment plan that ensures maximum returns. The IPS plays the role of assisting the client in monitoring, evaluating and supervising his or her investment portfolio. The IPS therefore:

Provides an excellent overview of all investment options available to the client.

Ensures that all investment options are in line with the client’s needs, wants, and objectives. It provides ...