FINA4920 Trading Game Final Report - Austin Wen

FINA4920 Trading Game Final Report - Austin Wen - Trading...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Trading Game Final Report Austin Wen FINA 4920 April 22 nd , 2010 I. Market Overview Starting around early February this year, the three major US stock indexes S&P500, Dow Jones Industrial Average, and Nasdaq both have a similar upward movements which indicate a positive signal for the US market. In the trading game period, Dow reached over 11,000 first time in a year and a half on April, and S&P500 index now closed above 1,200 also the first time since September, 2008. Therefore, the market has been doing well during the trading game period in the past four weeks in general. I I. Portfolio Performance A. Research on Buy-and-Hold Assets To begin with this game, first I equally distributed $275,000 into five different Buy-and-Hold categories. I designed my B&H portfolio with a high growth rate stock and a risky mutual fund along with low volatile bond, option, and Treasury bill. With this mind set, I tried to find the corporate bond and stock option which are close to its maturity day/exercise day to lower the risk. Especially, I was not familiar with stock option back to March 26 th . All I knew about option was its a risky investment; therefore, I decided to stay away from it. I chose a GE bond (GE.GUX / CUSIP: 36962GS70) and Vanguad Natural Resource option (VNR). I n the B& H stock section, I used the Google Finance stock screener to pick the companies with high 52 weeks price change percentage, so I bought Bell Microproducts I nc (BEL M) which has 976.92% 52 weeks price change. For me personally, its more like a gamble instead of a researched investment. I n mutual fund section was a little bit better because I have constantly looked for mutual fund to invest outside the class. I went to Vanguards website to evaluate all of its mutual funds. With all these mutual fund option, I picked Vanguard RE I T Index Fund Investor Shares (VGSIX) which contains 98 real estate investments stocks with $13.1 billion assets. I t was rated four out of five in r isk level which was considered high. The reason to go in real estate investment fund was I read a couple articles about the housing markets were slowly coming back. Therefore, I decided to give it a shot because I thought there would nothing worse than the housing price crashed a year and a half ago. B. General Strategy in Speculative trading In my speculative trading section, each week had 5 to 7 stocks, mostly listed in NYSE or NASDAQ, assigned into the speculative portfolio to be held one week. The stocks were sort based on the companies nationality; therefore, each week would only contain one nations stocks. The first week was all US based stocks; the second week was Chinese, and then Japanese, Taiwanese so on. Those stocks I picked were mainly was Chinese, and then Japanese, Taiwanese so on....
View Full Document

This note was uploaded on 06/06/2011 for the course STAT 4290 taught by Professor Lazar during the Spring '11 term at University of Georgia Athens.

Page1 / 6

FINA4920 Trading Game Final Report - Austin Wen - Trading...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online