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Your team has been given $50,000 (don't get too excited, it's notional not real money) to invest in ordinary shares listed on the Australian Securities Exchange (the ASX, http://www.asx.com.au/). Your goal is to (at least) match, and hopefully outperform the All- Ordinaries Index. Please note that you will not be penalised should you fail to achieve your goal; you will be marked on your report. A critical part of the report will be your understanding of why your portfolio performed as it did (a marking guide is included later in this document). You will need to monitor the performance of your shares on a daily basis. At the end of the game, you will be required to present a report: 1. discussing the performance of your portfolio using metrics such as the Sharpe ratio and Jensen's alpha (using the CAPM). 2. using metrics such as the Sharpe ratio and Jensen's alpha, you will compare the performance of your portfolio with the benchmark the All-Ordinaries Index. 3. outline your initial strategy and discuss how, and why, it changed (if it did). 4. discuss the influences (both good and bad) on your portfolio's performance. These influences can include both global and national news (e.g., wars) and major economic events and factors effecting individual companies. Factors affecting the entire market can be thought of as systematic while things affecting individual companies are idiosyncratic. 5. reflect on the Efficient Markets Hypothesis in light of your experience in managing your portfolio . The report should be no more than 10 pages (The 10-page limit includes graphs and tables within the main context, however tables and graphs in the appendix does not count). You must use: Times New Roman Font (at minimum, 12 pitch); 1 2 line spacing; Top, bottom, left and right margins to be at least 2%2cm from the edge of the page; and A4 naner Your team has been given $50,000 (don't get too excited, it's notional not real money) to invest in ordinary shares listed on the Australian Securities Exchange (the ASX, http://www.asx.com.au/). Your goal is to (at least) match, and hopefully outperform the All- Ordinaries Index. Please note that you will not be penalised should you fail to achieve your goal; you will be marked on your report. A critical part of the report will be your understanding of why your portfolio performed as it did (a marking guide is included later in this document). You will need to monitor the performance of your shares on a daily basis. At the end of the game, you will be required to present a report: 1. discussing the performance of your portfolio using metrics such as the Sharpe ratio and Jensen's alpha (using the CAPM). 2. using metrics such as the Sharpe ratio and Jensen's alpha, you will compare the performance of your portfolio with the benchmark the All-Ordinaries Index. 3. outline your initial strategy and discuss how, and why, it changed (if it did). 4. discuss the influences (both good and bad) on your portfolio's performance. These influences can include both global and national news (e.g., wars) and major economic events and factors effecting individual companies. Factors affecting the entire market can be thought of as systematic while things affecting individual companies are idiosyncratic. 5. reflect on the Efficient Markets Hypothesis in light of your experience in managing your portfolio . The report should be no more than 10 pages (The 10-page limit includes graphs and tables within the main context, however tables and graphs in the appendix does not count). You must use: Times New Roman Font (at minimum, 12 pitch); 1 2 line spacing; Top, bottom, left and right margins to be at least 2%2cm from the edge of the page; and A4 naner

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