For more course
tutorials visit
Focus of
the Final Project
The student will
construct a well-diversified portfolio using an initial investment stake of
$50,000 (the portfolio should use 95% of the fund, but they may not use more
than $50,000). The student may include stocks, common or preferred; bonds,
corporate or U.S. Treasury bonds; mutual funds; and futures contract or
options. The student will use the closing prices from the first day of the
class to determine the price of each issue. Only whole lots of any issues may
be acquired, that is no less than 100 shares of common or preferred stock; no
less than 5 corporate bonds or $10,000 for U.S. Treasury Bonds; no fewer than
the minimum required investment for any mutual fund; and no fewer than 5
contracts for any option or futures position. The settlement date will be the
first day of Week 3. The student does not have to use all of the above
mentioned securities, but they must use more than one class. Transaction costs
are ignored in the creation of the portfolio.
The paper is to be
written in accordance with the APA guidelines (6th Edition).
The student will
write a paper that:
Produces their
investment strategy, including an assessment of their willingness to bear risk.
Summarizes and
executes a detailed description of the securities in the portfolio including
brief historical information about each firm.
Executes a quarterly
and annualized return on the portfolio, and the expected return for the
portfolio (the student may use the closing prices as of 31 December of last
year).
Using concepts
learned within the course, computes the beta of the portfolio (MERGENT, in the
Ashford Online Library, can be used to find the historical betas of each
security).
Summarizes the
risks of their portfolio, and recognizes and interprets any areas where they
might consider reinvesting portions of their portfolio to achieve either less
risk or higher expected return.
No comments:
Post a Comment