Case Study 7 Pages + Calculations On Excel Sheet

Project Part 4, Final Project Submission: Assessment of your portfolio.

For this Part, you will be making a report to your investment committee that discusses and summarizes the performance of your stock portfolio. Use closing prices as of Sunday of Week 13, April 18, to calculate your returns. What is the final market value of your portfolio (including dividends received and added to non-interest earning cash)? If the final market value of your portfolio is less than $1,000,000, your portfolio lost money.

Provide a graph of the daily stock prices (high, low, and closing) for each of your stocks. Include the volume on each graph, with the scale shown on the right side of the graph. Be sure to label the graphs!

Provide a graph of the value of your portfolio and the value of the closing S&P 500 if $1,000,000 were invested in that initially. This is the normalized value. By normalized, you have scaled the S&P 500 closing prices so that its price on the first day ($1,000,000) is the same as the portfolio’s closing price on that first day.

In the final section of your report, recommend for or against the inclusion of each of these stocks in the portfolio and defend your recommendation. Use the information you have obtained in Part 1 Deliverable 2 to support your argument.

Calculations: Use the closing price of your stocks on Sunday of Week 13, April 18, to calculate your returns.

  1. Report the “purchase” and “sale” price of your stocks from the beginning and end of the semester along with any dividends you might have received.
    1. Calculate the buy-and-hold return on each stock [(MVend – MVbeginning + DIV) / MVbeginning] and the buy-and-hold return on your portfolio.
    1. Determine the final market value of your portfolio (including dividends received). If the final market value of your portfolio is less than $1,000,000, your investment lost money.
  2. Calculate the market value of
    1. Your portfolio for each day (including cash). I suggest that you do this by adding up the daily closing market values of your assets held and the cash you hold, including the total dividends received up to date.
    1. The S&P 500 index over this same period assuming you keep the same amount in cash. We are using the S&P 500 index as our proxy for the market.
  3. Plot the daily market value of your portfolio and the daily market value of the S&P 500 using your calculations in #3. (Dates on the X-axis, values on the Y-axis)
  4. Using the market values you calculated in #3, calculate the daily returns (percent) for your portfolio, and the S&P 500 index.
  5. Using your calculations in #5, calculate
    1. The average daily return and the standard deviation of daily returns for both the S&P 500 index and your portfolio.
    1. your portfolio’s beta by calculating the covariance of your portfolio’s daily returns with the S&P 500’s daily returns and dividing that by the variance of the S&P 500.
  6. Plot risk-return relationships for your portfolio and S&P500 benchmark for 1 year prior to January 31, 2021 and for the holding period since February 1, 2021.
  7. Discuss any changes that took place in terms of your portfolio relative performance compared to S&P500. What, in your view, explains these changes?

Write-up: Assume that you are preparing a relatively short report (maximum of 10 pages double-spaced) for your investment committee. You will be graded on the quality of your writing as well as the quality of your analysis. Do not simply answer the following questions – this should be financial report! These questions are intended to provide guidance.

  1. Introduction
  2. Comment on the individual and portfolio returns and on any information/events (market-wide or firm-specific) that may have contributed to the performance of your stocks. Describe and explain any trades you made. (Suggested length: a short, concise paragraph for each stock).
  3. From your calculations, if you held the S&P 500 instead of your stocks, how much money would you have ended up with? Would you have been better or worse off to hold the index? Analyze the reasons for any differences.
  4. Based on your calculations for standard deviation and beta, how risky was your portfolio compared to the index? Again, analyze the causes of the differences.
  5. Finally, what are your plans going forward? That is, if this class continued and you had the chance to alter your portfolio holdings now, would you choose to sell any of your stocks or would you want to keep holding them? What will you tell the investment committee? Be explicit.

Deliverables:

  1. Your report (7 – 10 pages double-spaced, 12 pt. font) plus graphs.
  2. Spreadsheet of returns and calculations, and market value plots – make it neat and readable.

Rubric

Project: Part 4

Project: Part 4
CriteriaRatingsPts
This criterion is linked to a Learning OutcomeQuantitative Literacy5.6 pts Above Standards Effectively works with numerical data and solves quantitative problems from a wide array of authentic contexts in everyday life. 5.05 pts Meets Standards Works with numerical data and solves quantitative problems from a wide array of authentic contexts with moderate effectiveness. 4.5 pts Approaching Standards Works with numerical data and solves quantitative problems with minimal effectiveness. 3.65 pts Below Standards Is not able to work with numerical data and solve quantitative problems.5.6 pts
This criterion is linked to a Learning OutcomeWriting4.9 pts Above Standards Uses clear language to accurately express abstract ideas and explain concepts. No errors related to organization, grammar and style, spelling, and citations. 4.4 pts Meets Standards Uses clear language to express ideas. Minor errors related to organization, grammar and style, spelling, and citations. 3.9 pts Approaching Standards Some errors related to organization, grammar and style, spelling, and citations. Lack of clarity in writing. 3.2 pts Below Standards Major errors related to clarity, accuracy, organization, grammar, style, spelling, and citations.4.9 pts
This criterion is linked to a Learning OutcomeInquiry and Analysis3.5 pts Above Standards Demonstrates extensive exploration of issues / objects / works through the collection and analysis of evidence to make well-informed conclusions / judgments. Organizes and synthesizes evidence to reveal insightful patterns, differences, or similarities related to focus. 3.15 pts Meets Standards Demonstrates adequate exploration of issues / objects / works through the collection and analysis of evidence to make informed conclusions / judgments. Organizes evidence to reveal important patterns, differences, or similarities related to focus. 2.8 pts Approaching Standards Demonstrates minimal exploration of issues / objects / works through the collection and analysis of evidence to make informed conclusions / judgments. Organizes evidence, but the organization is not effective in revealing important patterns, differences, or similarities. 2.25 pts Below Standards Does not demonstrate even minimal exploration of issues / objects / works through the collection and analysis of evidence and unable to make informed conclusions / judgments. Lists evidence, but it is not organized and/or is unrelated to focus.3.5 pts
Total Points: 14
Research Paper 101
Calculate your paper price
Pages (550 words)
Approximate price: -

Reasons to trust Research Paper 101

On Time Delivery

We pride ourselves in meeting the deadlines of our customers. We take your order, assign a writer but allow some more time for ourselves to edit the paper before delivering to you. You are guaranteed a flawless paper on a timely manner...

24x7 Customer Live Support

Our team at Research Paper 101 is committed to handling your paper according to the specfications and are available 24*7 for communication. Whenever you need a quick help, you can talk to our writers via the system messaging or contact support via live chat and we will deliver your message instantly.

Experienced Subject Experts

Online Experts from Research Paper 101 are qualified both academically and in their experiences. Many are Masters and Phd holders and therefore, are qualified to handle complex assignments that require critical thinking and analyses...

Customer Satisfaction

We offer dissertation papers as per students’ wishes. We also help craft out the best topics and design concept papers. By ordering with us, you are guaranteed of defending and making through those hard faced professors in the defense panel!

100% Plagiarism Free

We at Research Paper 101 take plagiarism as a serious offence. From the start, we train our writers to write all their papers from scratch. We also check if the papers have been cited appropriately. Our website also has a tool designed to check for plagiarism that has been made erroniusly. In essense, the paper you get will be 100% legit...

Affordable Prices

We understand that being a student is very challenging, some students balance between work and studies in order to survive. We therefore offer pocket friendly rates that are very competitive in the market.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

error: