Investment Analysis .tr



AD 470 Investment Analysis and Portfolio ManagementFall 2019Virtual Stock ExchangePortfolio Management ProjectPurposeThe purpose of using Virtual Stock Exchange is to give you a better understanding of trading strategies and portfolio management. You will also learn a variety of financial instruments and their risks and rewards as they apply to asset management. Project Overview and GoalsActing as a prospective portfolio manager for AD470 clients, your potential clients have entrusted you with $100,000 to invest at your discretion for a period of 2 months. They are expecting you to invest their money wisely and profitably. While your clients desire a high rate of return, but they do not like taking too much risk. Specifically, they are concerned about the following criteria:Absolute return: ?The total dollar increase in the portfolio over the trading periodRisk-adjusted return: The return on the portfolio taking into account the level of risk assumed by you, as measured by the Sharpe RatioRegistrationTo register your account, go to: the login code (to be announced in class). Registration is free. ScheduleDateEventOctober 01- 09Join Class Game, Game is on.Create your Portfolio.October 09Write a brief about your investment philosophyDecember 11End of GameDecember 18Final Portfolio Management Paper dueAssignment Part 1: Portfolio ConstructionThe investment game is on. You will receive the $100,000 in assets to begin investing for your potential clients. You are expected to create your portfolio within a week.Select from the allowable set of investments securities subject to the restrictions listed below. Portfolio Management ConstraintsYou may purchase any combination of securities allowed by the game.All cash must be invested. If you want liquidity you have to invest in a money market fund. We want you invested, not sitting on the sidelines.I suggest you to create a diversified portfolio.You can trade as often as you like but will be required to document all transactions and appropriate commissions, including all relevant documentation for mon stocks typically trade in contracts of 100 shares.You can make purchases on margin. Remember that if your portfolio value falls significantly you could be subject to a margin or maintenance call.You are allowed to short a stock, i.e., sell it without owning it, but you will be required to buy it back before or on terminal date.You are expected to submit a brief paper explaining your investment philosophy and the initial positions for your portfolio. For this purpose you can use the simulator’s “portfolio holdings and transactions” functions. Another option is to use AD470 Trading Sheet Template. This paper is due by October 11.Assignment Part 2: Final Virtual Stock Exchange Debrief PaperThe game ends on December 11, 2016. A three-page (max.), double-spaced text about your Virtual Stock Exchange experience will be due at the end of the semester (December 13, 2017). Please address the following in your text: What are the key things you learned from your Virtual Stock Exchange experience? How will your Virtual Stock Exchange experience influence your personal investing in the future?Which positions exceeded your expectations? What conditions caused this?Which positions underperformed for you? What factors created the performance gap?Please compute and include the following in your report:The transaction history (with commissions) for all trades from start to the end.The ending portfolio value.Calculate the return for your benchmark index (for ex: S&P500) for the same period of investment.Calculate your investment portfolio return and compare against the benchmark indeSources of Information for Portfolio ManagersSources that you may find to be particularly valuable for your research include:MarketWatch: : Street Journal:?? Yahoo Finance:? ?finance.Daily Treasury Yield Curve Rates: Management Library: Walker Management Library Research Links for Managerial Studies Students ................
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