you will submit a selection of stocks totaling $100,000.
1.You may select as few as 4, or as many as 6 investments.
2.Because we will be tracking the change in the Value of the Investments, it will be your advantage to complete your selection as soon as possible.
3.Create a spreadsheet. For each selection, list the stock name, the stock symbol, the stock price earnings ratio, the Beta, the number of shares you want to purchase, share value the day of your purchase, and total investment.
4.Any balance that you choose not to invest is in cash and is Money Market, assuming a 5.5% (annual) return.
5.Note – You can trade once. Once you have made your selections, you should consider carefully the costs of trading. You will be subject to a fee of $125 for making the trade. The loss you have sustained must also be considered. You can now reinvest only the amount of the stock at the time of the trade, minus the fee.
INSTRUCTIONS:
1.Set up a spreadsheet with the information indicated in #3 above.
2.Your spreadsheet should have an additional series of columns (or rows) so you
can enter the price of your stock each week. Put in the stock price each Monday.
3.Your spreadsheet should be able to calculate the value of your portfolio after you have
updated the stock prices weekly.
4.In the beginning of the 8th week, submit your spreadsheet and a recap indicating
the ending portfolio value and the percent return, annualized. Be sure to submit the
spreadsheet that shows the portfolio value for each week.
5.You will be submitting a Final Report. Here are the Final Report Guidelines:
There are to be three analytical and discussion areas of the report:
Financial Analysis of the Company
Market Performance of the Investment (stock, bond, money market fund)
Diversification (Risk and Return) of the Portfolio
The Financial Analysis of the Company will include:
1. A brief description of the business that the company is in, including the size of
the company—you may copy/paste the pertinent information into your report—
graphs, etc., company information—but it must be commented on and analyzed
by you.
2. The CEO with his or her strengths (if you know them)
3. The financial condition of the company: ratios, profitability, etc.
Include Graphs.
4.Future plans of the company that you feel are relevant.
Market Performance of the Investment:
5.Explain the particular investment qualifications such as the Beta, EPS, Dividend
policy, etc.
6.How did your investment perform? What was the return? Include your final
spreadsheet in this Section.
7.What do you predict for its future performance? Would you reinvest in it?
Submit your spreadsheet and recap on your portfolio.
Submit your Final Report following instructions for the Final Term Project – Portfolio Project.
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