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Business and Economics

Case motivation: Zeus Asset



Learning objectives
Consider different types of investors with different risk preferences and
how their investments differ as a result
Examine how different mutual fund investments might allow individual
investors to invest in portfolios otherwise not within their reach.
Understand how fund performance is estimated and the caveats
associated with a focus on returns without taking into account the risks
associated with generating them.
Be capable of determining the best risk-adjusted measure of return for
a particular investment.

Case Synopsis
This case centres around Zeus Asset Management Inc. Zeus is an
asset management firm with both individual (high net worth) investors
and institutional investors. Zeus is known for its relationship-orientated
client services and has a conservative, risk-averse quality-oriented
approach to investment management. Given their diverse client base
and their individual needs, Zeus is interested in improving their
measures of fund performance, which to date has consisted mainly of
holding period and benchmarked returns. Zeus is particularly interested
in obtaining risk-adjusted return measures.

Case Synopsis continued

Key questions for consideration
1. How does Zeus differ from its main competitors
2. Why is estimation of risk-adjusted returns of particular interest to
3. Discuss the advantages and disadvantages of the risk-adjusted return
measures employed.

Potential questions to address in your report

Discuss the alternative performance measures and mention the merits for
each of them.
Discuss why absolute or relative returns may not reveal the entire truth
about performance.
Examine the choice of appropriate benchmark for each of Zeuss mutual
Estimate performance measures for each of mutual funds for Zeus as well
as for the appropriate comparison index.

Submission (Case: Zeus)

You may work in groups but document and submit individually:
- Penalties will apply if we spot collusion
- Groups must be registered with Amale
You must document:
Any assumptions you have made not specified in the case
Show any calculations (if relevant) in the Appendix
Depending on your formatting about 3-4 pages and not more than 5
pages, 1.5 spacing and 12 point font.

Submission Due Date: 12 noon Monday 23 March, 2015.

Submit via MOODLE

Sample Template
Key points facts and problems:
1. What are the problems and the key issues that arise
2. Address the given discussion points or questions
3. Conclusions and recommendations if any
Do Not use a Q and A answer format : make this a business type briefing
Avoid restating what is already in the case