Please find the investment philosophy in the attached file, however necessary changes to the investment philosophy need to be made to reflect investments only geared for the purchase of stocks, mutual funds or ETFs. (One constraint is that you cannot purchase the S & P Stock Index.) Such revised changes as well as investments need to be explained in the following context: What did you purchase and how does it relate to the investment policies and strategies statement you developed for Homework #1? Did you modify the investment policies and strategies? If you changed your investment policies and procedures what exactly did you update? If you revised your investment strategies did you inform the client?
Using the policy and strategy detailed in Homework #1 select securities for your portfolio. (The short-term demonstration Porfolio has $100,000.00.) Please keep in mind that you do not have the luxury of trading or selling and/or buying securities during your portfolio holding period.
· After you determine your initial portfolio you must buy the portfolio using the com/tradtool/virtualtrade.aspx”>CBOE Virtual Trade Tool (http://www.cboe.com/tradtool/virtualtrade.aspx). The commission costs per trade (using CBOE Virtual Trade) are $9.95/trade for stocks and ETFs and $14.95/trade for options.
· The securities you select for your portfolio can be selected from any traded securities that are available on CBOE Virtual Trading. (Exception! you may not invest in mutual funds or the S&P 500 market index)
· To start your Portfolio, purchase a Portfolio of 5 Common Stocks, Mutual Funds, and ETFs at the beginning of Week 2
The following are a few guidelines to assist you with the P2- Initial Portfolio Homework Assignment. A good outline for your P2- Initial Portfolio paper is to start with a one paragraph summary of your P1- Investment Selection Policy Statement / Philosophy. Conclude your summary by stating that you used these guidelines to create the initial portfolio of five securities, then describe the securities you simulated purchasing.
Please provide information in your paper (or under separate cover) about what you purchased, the type of security you purchased, the purchase price, and percentage of the $100,000 portfolio each security represents. (Yes, you must spend the entire $100,000.) You can use a screen capture of your CBOE portfolio, or the Excel spreadsheet I have provided in Content, Week 2, or use a MS Word table to communicate the required information about your P2- Initial Portfolio.
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