Develop portfolio of investments and trades, Financial Accounting

The family next door just received a $300,000,000 cash payout after winning the lottery. You talked with them and are trying to convince them to let you manage a portfolio of investments for them.  You have been doing some research and would like to start and manage a mutual fund when you graduate from college at the end of this semester.  Since they know you are taking a class in Finance at Penn State Altoona, they decided to have a contest.  They will allocate $250,000 to each student. They want each student to work with a team that will serve as an investment committee.  

The individual with the highest net return (i.e. the highest portfolio value) wins, and the family has agreed to invest all of their winnings in a mutual fund to be managed by that person.   The winner will also receive 5 bonus points for the project, provided that at least 5 points have been otherwise deducted.  In no event will the winner's grade exceed 100%.

Investment Criteria:
There will be will certain limits imposed on the percentage of your portfolio that can be invested in any one investment.  These limits will be built into the portfolio management software by your instructor.  Each investor (student) must utilize at least seven (7) of the following investment vehicles in their portfolio:    

1.  Market orders for stock                                                           6.  Mutual funds
2.  Limit orders for stock                                                              7.  Futures contracts
3.  Stop orders for stock                                                                8.  Bonds
4.  Call options contracts                                                               9.  Spot contracts
5.  Put options contracts

As each student develops his/her portfolio of investments, trades can be made on any of the 20+ global exchanges that are included in the virtual trading platform, but each investor must trade on at least three (3) of the following exchanges:

A.  New York Stock Exchange (NYSE)                                     D.  London Stock Exchange
B.  NASDAQ                                                                            E.  Bombay Stock Exchange
C.  Frankfurt Stock Exchange                                                 F.  Shanghai Stock Exchange

Posted Date: 3/19/2013 6:21:26 AM | Location : United States







Related Discussions:- Develop portfolio of investments and trades, Assignment Help, Ask Question on Develop portfolio of investments and trades, Get Answer, Expert's Help, Develop portfolio of investments and trades Discussions

Write discussion on Develop portfolio of investments and trades
Your posts are moderated
Related Questions
Define the term Relevance - accounting information Accounting information should have the ability to influence decisions. Except this characteristic is present, there is ac

Brazil Corporation was organized on January 1, 1999. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock, and 500,000 shares of common stock with a par val

In additional information depreciation of two years is given. What is the treatment of it while preparing fixed assets account.

Assuming the robot is placed on track at the packing station facing away from the station) the robot traverses the entire track. During this step, the robot will follow a left-hand


Principles, concepts and CONVETIONS

1. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,218,246. have a

DISTRIBUTION UNDER THE INTESTACY PROVISIONS When a person dies without leaving a will, his estate is distributed according to the Law of Succession Act. When a person dies, fou

What are the various strategies behind selected low (e.g., zero) or high coupon rates when issuing bonds?

During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company invested in securities, as follows: On Nov. 12 purchased 1,000 shares of common st