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Downloaded by Vincent Cosmas ()
,UNIVERSITY EXAMINATIONS
Oct/nov 2025
INV4801
Portfolio Management
100 Marks
Duration: 3 Hours
This paper consists of 21 pages in total.
This is a fill-in examination paper, and the questions must be
answered in the designated areas of the paper. If you cannot type in
your answers in the space provided, you can write/type on separate
answer sheets/ word document and the questions must be clearly
numbered. You are also allowed to print the exam paper and then
complete it.
Please note:
1 You are provided here, with an online timed exam of evidence
designed to evaluate your competence in the Portfolio
Management module (INV4801).
2 It is therefore important that your presentation is original or that
it is presented in your own words, in the spaces allocated to you.
, CONFIDENTIAL INV4801 2025
Page 2 of 20
Make sure that your presentation is done by you, in your own
words and is brief as required.
3 This assessment is conducted online. You are therefore required
to complete and upload it online on or before the deadline time.
4 Students must answer all the four questions.
5 The questions may look similar to previous assignments or other
exams, but they are fundamentally different though they still
examine similar learning outcomes (LOS).
The Non-Venue Format is a Take-home Timed Exam with submission
on the Assessment Info Tool on https://cems.myexams.unisa.ac.za/
Please read the next page for the Invigilator App information
Question 1 [25
marks]
and income will grow at the inflation rate. All medical costs, now and in the
future, are fully covered through government programs.
The Jonahs worry about whether they have saved enough for retirement, and
whether they will be able to maintain the real value of their portfolio.
Inflation is expected to average 5% for the foreseeable future.
[TURN OVER]
, The Jonahs have approached Joseph David to help them analyze their
investment strategy and retirement choices. The Jonahs disagree about the
appropriate investment strategy. Rebecca prefers not losing money over
making a high return. This is partly a result of continued regret for a loss
experienced in an equity mutual
She thinks Peter focused only on potential return and paid little attention to
risk.
The Jonahs currently have all their assets in inflation-indexed, short-term
bonds that are expected to continue to earn a return that would match the
inflation rate after taxes. After retirement, they are willing to consider
changing their investment strategy if necessary to maintain their lifestyle.
The Jonahs are eligible to retire next year at age 55. If they do, Rebecca will
receive annual payments from -benefit pension plan and
both Rebecca and Peter will receive payments from the U.S.
government pension plan. Peter does not participate in any company or
individual retirement plan. David has
heir retirement
date next year.
Exhibit 1
Financial Data and Market Expectations
Rebecca and Peter Jonah
Retirement at Age
55 (2026)
Expected enses $ 165,000
annual exp
Annual ome (after-tax)
pension inc
$ 50,000
Downloaded by Vincent Cosmas ()
,UNIVERSITY EXAMINATIONS
Oct/nov 2025
INV4801
Portfolio Management
100 Marks
Duration: 3 Hours
This paper consists of 21 pages in total.
This is a fill-in examination paper, and the questions must be
answered in the designated areas of the paper. If you cannot type in
your answers in the space provided, you can write/type on separate
answer sheets/ word document and the questions must be clearly
numbered. You are also allowed to print the exam paper and then
complete it.
Please note:
1 You are provided here, with an online timed exam of evidence
designed to evaluate your competence in the Portfolio
Management module (INV4801).
2 It is therefore important that your presentation is original or that
it is presented in your own words, in the spaces allocated to you.
, CONFIDENTIAL INV4801 2025
Page 2 of 20
Make sure that your presentation is done by you, in your own
words and is brief as required.
3 This assessment is conducted online. You are therefore required
to complete and upload it online on or before the deadline time.
4 Students must answer all the four questions.
5 The questions may look similar to previous assignments or other
exams, but they are fundamentally different though they still
examine similar learning outcomes (LOS).
The Non-Venue Format is a Take-home Timed Exam with submission
on the Assessment Info Tool on https://cems.myexams.unisa.ac.za/
Please read the next page for the Invigilator App information
Question 1 [25
marks]
and income will grow at the inflation rate. All medical costs, now and in the
future, are fully covered through government programs.
The Jonahs worry about whether they have saved enough for retirement, and
whether they will be able to maintain the real value of their portfolio.
Inflation is expected to average 5% for the foreseeable future.
[TURN OVER]
, The Jonahs have approached Joseph David to help them analyze their
investment strategy and retirement choices. The Jonahs disagree about the
appropriate investment strategy. Rebecca prefers not losing money over
making a high return. This is partly a result of continued regret for a loss
experienced in an equity mutual
She thinks Peter focused only on potential return and paid little attention to
risk.
The Jonahs currently have all their assets in inflation-indexed, short-term
bonds that are expected to continue to earn a return that would match the
inflation rate after taxes. After retirement, they are willing to consider
changing their investment strategy if necessary to maintain their lifestyle.
The Jonahs are eligible to retire next year at age 55. If they do, Rebecca will
receive annual payments from -benefit pension plan and
both Rebecca and Peter will receive payments from the U.S.
government pension plan. Peter does not participate in any company or
individual retirement plan. David has
heir retirement
date next year.
Exhibit 1
Financial Data and Market Expectations
Rebecca and Peter Jonah
Retirement at Age
55 (2026)
Expected enses $ 165,000
annual exp
Annual ome (after-tax)
pension inc
$ 50,000
