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
State the relationship between return and risk This relationship between return and risk has significant implications for setting financial objectives for a business. Owners wil

#what are the limitations or disadvantages of accounting concept?

A village ordered supplies for its Fire Department at an estimated cost of $16,700. The supplies were received with an invoice for $16,800. The village accepted the shipment and th

Natalie cashes in her U.S savings Bonds and receives % 520, which she deposits in her personal bank account. Journalize it

TRUST ACCOUNTS (a) Object of trust accounts : To demonstrate that the trust funds have been applied in accordance with the trust instrument; To give details of tra

Activity-Based Costing (ABC) An accounting method that assigns identifiable costs and allocates common costs to definite product lines or business fragments Also known as pro

General limitations of Net Present Value when applied to investment appraisal NPV is a generally used technique employed in investment appraisal but is subject to a number of r

Q. Calculation of internal rate of return? The company is accurate in its belief that NPV measures the potential increase in company value of an investment project since theore

ABATEMENT OF LEGACIES (a) If the assets, after the payment of debts, necessary expenses and specific legacies, are not sufficient to pay all the general legacies in full, the l

Could you please read this article? I am confused what the shortcoming of this critical review.