You have been appointed the portfolio manager of a GHS 1.5 billion pension fund recently established....

You have been appointed the portfolio manager of a GHS 1.5 billion pension fund recently established. The fund is required to maintain 40% of its portfolio in GSE-listed financial stocks.

a) Select two financial sector stocks in your proposal to the fund’s board of trustees. Justify your selection using at least one-year market information.

b) A member of the board of trustees has argued for the use of a stock index in the exercise.

i. State and describe an index on the local bourse that you would use for this

purpose.

ii. Assess the use of market indices in portfolio management.

Expert Solution

jeff jeffy answered 2 years ago

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