Chat with us, powered by LiveChat ASHFORD BUS 405 week 5 final | Gen Paper
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Week 5 – Final Project –
Construct a well-diversified portfolio
“The student will construct a
well-diversified portfolio using an initial investment stake of $50,000 (the
portfolio should use 95% of the fund, but they may not use more than $50,000).
The student may include stocks, common or preferred; bonds, corporate or U.S.
Treasury bonds; mutual funds; and futures contract or options. The student will
use the closing prices from the first day of the class to determine the price
of each issue. Only whole lots of any issues may be acquired, that is no less
than 100 shares of common or preferred stock; no less than 5 corporate bonds or
$10,000 for U.S. Treasury Bonds; no fewer than the minimum required investment
for any mutual fund; and no fewer than 5 contracts for any option or futures
position. The settlement date will be the first day of Week 3(aug 23rd). The
student does not have to use all of the above mentioned securities, but they
must use more than one class. Transaction costs are ignored in the creation of
the portfolio.
The paper is to be written in accordance with the
APA guidelines (6th Edition).
The student will write a paper that: Produces
their investment strategy, including an assessment of their willingness to bear
risk. Summarizes and executes a detailed description of the securities in the
portfolio including brief historical information about each firm. Executes a quarterly
and annualized return on the portfolio, and the expected return for the
portfolio (the student may use the closing prices as of 31 December of last
year). Using concepts learned within the course, computes the beta of the
portfolio (MERGENT can be used to find the historical betas of each security).
Summarize the risks of their portfolio, and recognizes and interprets any areas
where they might consider reinvesting portions of their portfolio to achieve
either less risk or higher expected return.”

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