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Investment Portfolio Outline

You are a portfolio manager in an investment company (can be a mutual fund, or a pension fund, hedge fund, private equity firm, or any you may imagine). You have $1 million to invest for your fund.

Goal of the project: To Learn and Apply the basic tools and skills In Investment Analysis

Assets Available for investment: Stocks

Portfolio Goal: (Choose one), Capital Appreciation, Capital Preservation, Income, or any objective you may define

Portfolio Selection Strategies: Risk and Reward Specification

Data recording and analysis:

Download weekly stock price data of your stocks

Calculate weekly portfolio returns and standard deviation

Performance Calculation and Analysis: calculate Sharpe ratio for your portfolio

Compare the portfolio Sharpe ratio with that of the market portfolio (Use the S&P500 portfolio as a proxy for the market portfolio)

Prepare your report: You will prepare a report that includes an Introduction of your portfolio, description of the stocks in your portfolio, any major news that moves your stocks, explanation of any theory you applied, the data sources, weekly and overall results, and your conclusion. Include everything, Excel calculation, in a word document.

Assessment Matrix:

Portfolio setup: 30% Weekly Data Analysis: 30%

Application of investment theory: 40%

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