Investment Management Theory

This is a group course work and you are completely PERSON 2 section only which is around 700 words. This is the breakdown of the company and the requirements for each person and you will only complete PERSON 2 tasks. I require working shown with the calculations ! I require full access of references used and the data must be used from approved sources which will be provided in the SHARED RESPONSIBILITIES section all the way down. As well as note that all calculations must be included in the appendix with formulas shown. I will write below what the tasks are, AGAIN you are only completely PERSON 2/QUESTION 2. HSBC Investment Management Coursework Task Allocation (3000 words) We are analysing HSBC. Below is the agreed division of work to ensure equal contribution and alignment with the marking criteria. Person 1 Q1: Top-Down Market & Sector Analysis (Approx. 750 words 30%) Focus: Macroeconomic environment, banking sector, and justification for HSBC. Tasks: Analyse GDP, inflation and interest rates (20242025), mainly UK and relevant Asian markets. Review government and corporate bond market trends. Discuss banking sector performance and how interest rates affect banks. Provide rationale for selecting HSBC (industry position, strengths, risks/opportunities). Include 34 supporting graphs. Person 2 Q2: Company Fundamentals & Financial Health (Approx. 700750 words Part of 40%) Focus: Financial statements and credit assessment. Tasks: Analyse capital structure (debt/equity, leverage ratios). Review liquidity ratios. Assess profitability (ROE, ROA, margins, NIM). Evaluate cash flow and cash-flow-to-debt. Provide judgement on HSBCs creditworthiness as a bond issuer. Include ratio tables and clear interpretation (not just numbers). Person 3 Q3: Equity Valuation & Market Performance (Approx. 700750 words Part of 40%) Focus: Share performance and valuation. Tasks: Compare HSBC share price with relevant sector index (last 2 years). Analyse P/E, EPS, dividends, market cap and sales forecasts. Calculate beta and expected return using CAPM. Interpret whether HSBC is overvalued, undervalued, or fairly priced. Include valuation tables and CAPM calculation (formula shown in appendix). Person 4 Q4: Investment Recommendation, ESG & Final Editing (Approx. 600700 words + Executive Summary) Focus: Final judgement and sustainability assessment. Tasks: Provide clear BUY / HOLD / SELL recommendation (12-month outlook). Base recommendation on Q2 financial analysis and Q3 valuation/CAPM. Assess HSBCs ESG profile and alignment with net-zero targets. Comment on suitability for an ESG-focused investor. Write executive summary (250300 words). Ensure formatting, Harvard referencing, table of contents, index of graphs, and final structure are correct. Shared Responsibilities: All data must come from approved sources (Bloomberg preferred, annual reports, FRED, Bank of England, Yahoo Finance, Google Scholar). All calculations must be included in the appendix with formulas shown. One final group review before submission. Only one person submits via Turnitin with all names on the cover page. This keeps the workload balanced and aligned with the marking weights.