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Assignment One Instructions S 22023
Assignment One Instructions S 22023
I. General Guidelines
You are required to complete this assignment on your own and it accounts for 20% of the
course’s final grade. All questions are compulsory.
Please submit a soft copy of your work (with your student name and ID on the front page) via
Turnitin by 11.59pm Friday 4 August 2023 (Week 5). For assignments submitted 1 to 10
days late, a penalty of 10% (of the marks awarded) per day will apply. For assignments
submitted more than 10 days late, a penalty of 100% will apply. Weekends (Saturday and
Sunday) are counted toward total late days. Extension requests must be supported with
appropriate documentation to justify extreme circumstances.
You have only TWO attempts to submit your assignment. Check your documents carefully
before submission. For every extra submission, your assignment will be deducted 30% of
the marks awarded .
The assignment should be typed. Any graphs should be drawn using MS Office tools. All
calculations must be done using MS Excel.
Please include any additional files such as Excel worksheets in your submission (use +
Add another file function).
The document should be formatted following the guidelines below and the RMIT
presentation guidelines:
Text: justified
Character size: 12 point
Font: Times New Roman
Margin: 1 inch
Maximum word count: 1500 words ± 10% (not including references/tables/figures),
this should be written on the cover page. For every 100 word exceeded, your
assignment will be deducted 5 points. Please note that using/attempting to use any
tricks to reduce word count or gain academic advantages is considered academic
misconduct
RMIT Classification: Trusted
(Please submit a well-written and organised report containing all your MS-Excel worksheets,
mathematical calculations and written comments.)
Imagine that you will graduate from RMIT at the end of 2024 and start working at an
international company. You plan to buy your first one-bedroom apartment at the beginning of
2035, and buy another two-bedroom apartment at the end of 2039. You can choose to sell the
first apartment to buy the second one, or borrow money from the bank to fund the second
apartment. This assessment task requires you to take all of the necessary steps to prepare the
payment for your future apartments. Use your understanding of annuities to calculate how
much you must save and invest monthly after graduation to buy your dream apartments.
Important note: The numbers you enter into the excel worksheets are NOT expected to be
ACTUAL amounts, but instead, numbers that you have created. But it is important to be as
REALISTIC as possible. You can do your research to find the reasonable price of
apartment, salary, interest rate, etc. in the current market.
You can use your home country’s currency to complete this assessment.
Requirements:
1) Write a report about your budget planning with sufficient assumptions for the cashflows
and discount rates. Use the MS-Excel worksheet to create your budget planning for your
first and second apartments.
Guidelines:
- Investigate how much you must invest at the end of each year in order to reach your
goals
- Your income should consist of your salary, dividends, and any other source of income
for example interest income you expect to have until you buy the apartments.
- Your expense should consist of daily living (renting, transportation, health, insurance,
etc.) and other expenses you can have in your life such as investment and saving.
- Estimate the Weighted Average Rate of Return1 you expect to earn from your long-
term investments.
(50
marks)
2) Based on some academic literatures, explain in detail how your attitude towards RISK
along with your characteristics (age, gender, education, work, family, etc) can impact
your investment plans and outcomes. You need to support your argument with some
academic research about investor risk. Provide examples to support your explanation.
(20
marks)
1
WARR = w1*R1 + w2*R2 + w3*R3 + …. + wn*Rn where w is the weight of the asset and R is
the return of the asset.
RMIT Classification: Trusted
3) Estimate how the economic, political and any other significant events around the world
that may happen in the next 5 and 10 years would impact your investment plans and
outcomes. Provide supporting data in the form of citations to academic research, graphs
and illustrations. (20
marks)
4) You need to ensure the breadth and quality of the sources used in the assignment. The
presentation of the assignment must be professional. (10 marks)
RMIT Classification: Trusted
RMIT Classification: Trusted
This criterion is 20 to >15.99 pts 15.99 to >13.99 pts 13.99 to >11.99 pts 11.99 to >9.99 pts 9.99 to >0 pts
20 pts
linked to a Learning HD DI CR PA NN
RMIT Classification: Trusted