Determination of Interest Rates and Investment Strategy

Determination of Interest lay outs and Investment Strategy group Assignment (August, 2012) Name : Athula Harischandra - squad Leader (2011/MAFE/64), Y.S Jayasinghe (2011/MAFE/65), W J M P R Lokubandara(2011/MAFE/17), R Dawood (2011/MAFE/88) Course lector : : MAFE 06 - pecuniary Markets Ms Vindhya Jayasekera Master of humanities in Financial Economics University of Colombo 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Table of Contents outline delivery and GDP Monetary Policy The Yield coil and historical movement of Interest Rates Inflation, Exchange Rate agate line Market Investment Strategy Performance look retracted References 1 2 3 4 6 8 9 11 12 13 14 1 1. Abstract This motif primarily directiones on constructing a adapted medium to spacious term investiture strategy in the context of Sri Lankan fiscal markets looking beyond 3Q 2012. In doing so, we focus on the big economic developments of the country and how it will extend to the general gratify rate environment and the investment environment of the economy. In stage analysis has been done on how these developments may affect the justness and fixed income market in rove to create an investment portfolio with an optimum risk to return.

In the absence seizure of risk proneness guidelines for the investment portfolio, we have carried out the plus allocation assuming a low risk appetite. 2 3 Economy and GDP The end of two-and-a-half decades of civilised contravention in May 2009 has put Sri Lanka on a higher, to a greater extent sustainable emersion trajectory. After the end of the war, pecuniary sculptural r! elief took place via two policy rate reductions to file the change magnitude economic activity in the country and helped in the reconstruction efforts. Renewed investor confidence in the Sri Lankan economy truism monolithic portfolio inflows to government securities and the stock market. The Sri Lankan economy recorded a growth of over 8 percent for two straight historic period for the first time in its history. Sri Lankas sovereign military rating was...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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