Assignment 1 - Creating and Managing a Portfolio2

Assignment 1 - Creating and Managing a Portfolio2 -...

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Assignment #1 – Creating and Managing a Portfolio Each team must create and administer a portfolio with Stock-Trak ( www.stocktrak.com /cj). Although each member of a team is expected to participate in the selection, analysis, and trading of securities each team will have to manage only ONE account. In order to register with Stock-Trak you will need an account number from the instructor and also the certificate number you will find in a new copy of the textbook “Fundamentals of Investments” 5 th edition, by Jordan and Miller. 1 The purpose of this assignment is to familiarize you with different financial securities and with all the decisions involved in managing a portfolio. You will have to invest the portfolio in several assets and financial instruments as stocks, bonds, mutual funds, currencies, options and futures. At the end of the semester each team will have to present a summary report of the portfolio’s trading and performance. The report will have to include a brief investment policy statement explaining the investment objectives for the portfolio (max. 2 pages). The policy statement will have to specify the investment horizon, liquidity needs, and investment philosophy that the team will have to follow when managing the portfolio. 2 It is very important the investment policy be consistent with the actual portfolio management. In addition to the investment policy, the report will have to list by asset classes all the transactions the team made. In particular, you must report the type of transaction (buy, sell, sell short, or cover a short sale), the date of the transaction, and the amount of the transaction. At the end of each trading week the composition of the portfolio must be
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This note was uploaded on 09/08/2010 for the course BUS 172A at San Jose State University .

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Assignment 1 - Creating and Managing a Portfolio2 -...

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