The instructions are in attach files
Below is a detailed outline for the stock market challenge assignment. This project is due in April - Your trading will end the beginning of April. You will have work to complete each week of the term that relates to this assignment. Please review the assignment instructions below, so you are able to get setup with the stock market challenge website on the first day of class. ** Purpose The purpose of using Virtual Stock Exchange is to give you a better understanding of trading strategies and portfolio management. You will also learn about a variety of financial instruments and their risks and rewards as they apply to asset management. Take if seriously - it is not a "game" - have a reason and financial justification for how you use the money. Project Overview and Goals You will take on the role of a portfolio manager competing against one another. Acting as a prospective portfolio management firm for clients, your potential clients have entrusted you with $10,000 to invest at your discretion for a period of 10 weeks. The simulation trading window closes on Friday April 2, 2021, and your written report and supporting PowerPoint slide presentation are due no later than April 18, 2021 by 11:59PM. Your clients are expecting you to invest their money wisely and profitably. While your clients desire a high rate of return, their tolerance for risk is considered low. ASSIGNMENT INSTRUCTIONS - 70 POINTS - DUE NO LATER THAN April 18, 2021 BY 11:59PM You will complete and submit a written report and supporting PowerPoint slide deck about the MarketWatch portfolio management simulation assignment. You will not present your analysis in front of the class, so if you want to add commentary for any slide, please do so in the notes section. Both documents (written report and PowerPoint Presentation) must be uploaded to canvas no later than the due date . The PowerPoint does not have a minimum slide count - although I would expect 12 - 18 slides. Slides should have less than 36 words and a graphic, image or spreadsheet /table on them. The PowerPoint should highlight the contents of the written report, especially the spreadsheet tracking your performance. The Written report should include: Cover page including the name of your investment firm, your name, the course name, and the date. Table of Contents Overall Investment Strategy: What was the rational for the investments selected? Did you use a top-down approach of first analyzing the economic outlook, which industries would do well given your economic forecast, and specifically what stocks within those industries you thought were worthwhile investments. Did you use a value investing strategy (Warren Buffett) in which you identified stocks trading below their intrinsic values, and assumed these investment would move up toward their true value. Did you use behavioral finance as a strategy, by focusing on investor sentiment, past history of stock prices, and predicted the future price based upon a pattern on the chart. Did you adopt the random walk/efficient market hypotheses, and used darts to select stocks because the chances of outperforming the market according to these theories is largely based on chance? You do not need to use any of these strategies. You could use discounted cash flows valuations or other valuation methods we will learn about this term, or you could just create your own strategy. No matter which strategic framework you select, make sure you explain what the strategy is, what validity it has (have others used it with success), and why you selected that strategy. Weekly performance of your investments. Since you monitored the performance of your funds’ investments each week, and compared that performance with the S&P 500 index. Explain why your investments each week, did better, worse, or equaled the markets performance. What news events occurred during that week (political, economic, financial etc.) that were notable? Did these events have any impact on your portfolio? Why did you select the investments you chose? Highlight your best overall performing investment for the semester and the worst one. Talk about the companies, what they do, why you selected them, and why they did either very well (best performer) or really bad (worst performer). Conclusion. What was the overall performance of your fund during the competition? What was the total absolute return of your portfolio over the entire semester? How did that compare with the S & P 500 over the same period? Were there things you think you should have or could have done better to improve your performance? What lessons did you learn from this this activity? On a scale of 1-10 do you feel better prepared to invest for yourself as a result of this assignment (1 = not prepared at all to invest, 10 = very prepared to invest)? What is your investment strategy personally? Do you currently invest, if so, what is your strategy for doing so. If not, why not (please do not say I do not have any money to invest). Other items you can consider for your presentation, but are not required include: Which positions exceeded your expectations? What conditions caused this? Which positions under performed for you? What factors created the performance gap? What are the key things you learned from your Virtual Stock Exchange experience? How will your Virtual Stock Exchange experience influence your personal investing in the future? Sources of Information for Portfolio Managers Some Sample Sources that you may find to be particularly valuable for your research include: MarketWatch: http://www.marketwatch.com/ Wall Street Journal: wsj.com Yahoo Finance: yahoo.com Daily Treasury Yield Curve Rates: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield Walker Management Library: Walker Management Library Research Links for Managerial Studies Students