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
Question Capital Expenditure Decisions and Investment Criteria Bodmin plc Bodmin plc is a highly profitable electronics company that manufactures a range of innovative produ

Calculate the Return on Sales and Asset Turnover 1. Complete a trend analysis for the items below for the last three years using the earliest year as the base year. Cash

what are five modern techniques of accounting

Q. Non-financial factors for non-financial considerations? There are several non-financial factors which possibly relevant to a decision to contract out and the type of factors

Show the rectification entries for the following:                                        (10 marks) a.    The Sales account is undercast by Rs.15,000 b.    Goods returned by

what are the types and objectives of international accounting standersds?

The following figures are taking from the book of Sheen Compnay limited as on december 31,2009 DEBIT SIDE : opening stock Rs 75000 purchases 245000 wages 30000 c

Great Pumpkin Farms just paid a dividend of $3.50 on its stock.  The growth rate in dividends is expected to be a constant 5 percent per year indefinitely.  Investors need a 16 per

Let us assume you expect to obtain Rs.2000 yearly for the next three years. The receipt of Rs.2000 is evenly divided. One part that is: Rs.1000 is obtained at the beginning of the

Continuing growth of the company has required that we issue the company's corporate debt soon. As you know, in 6 months we plan to issue $10 million worth of 20-year corporate bond