BBA 325 Portfolio Management Final Assignment: INVESTMENT Simulation<\/p>\n
individual<\/p>\n
you have to submit: 12 slides presentation (.pdf or .ppt), and written report of 1000-1500 words (.pdf)<\/p>\n
40% of the final grade<\/p>\n
Investment competition instructions:<\/p>\n
The closing date of the competition: the date of the class on week 12.<\/p>\n
Recommended structure of the presentation:<\/p>\n
Slide 1: Show which stocks you chose for your portfolio. Report the weights of the stocks, prices at the beginning and at the end of the competition. Do not choose more than 4 stocks.<\/p>\n
Slide 2: Report the overall realized return on your investment portfolio.<\/p>\n
Realized return of portfolio=w1*R1+w2*R2+w3*R3+w4*R4<\/p>\n
wi=weight of stock \u2018\u2019i\u2019\u2019 in your portfolio<\/p>\n
Ri=realized return of asset \u2018\u2019i\u2019\u2019= (Price @ end \u2013 Price @ beginning)\/Price @ beginning <\/p>\n
OR <\/p>\n
more formally:<\/p>\n
R=(P[t+1]-P[t])\/P[t]<\/p>\n
Slide 3: How did you choose the stocks to your portfolio: fundamental analysis, technical analysis, recommendations of analysts, news analysis, etc.<\/p>\n
Slide 4: Report the variance-covariance matrix<\/p>\n
Option 1: Take estimates from the other web pages<\/p>\n
You can take estimates of volatilities of individual stocks from Reuters, Bloomberg, Yahoo finance or other sources. If you are not quite sure how to estimate covariances between stocks: <\/p>\n
You can take estimates of Reuters, Bloomberg or other credible web page.<\/p>\n
Option 2: Compute by yourself using historical data<\/p>\n
How to estimate variance-covariance matrix from historical data:<\/p>\n
https:\/\/www.youtube.com\/watch?v=V10ZoFvhy6s<\/p>\n
Option 3: Less preferable<\/p>\n
You can assume that all the covariances are zeroes. It is an option only if you are unable to do one of the two methods above.<\/p>\n
Slide 5: Compute the volatility of your portfolio<\/p>\n
Hint: it is easy to compute in matrix form in excel. MMULT command.<\/p>\n
Sigma2_p= w_T* Variance-covariance matrix*w<\/p>\n
Slide 6: Compute Sharpe ratio, assuming risk-free rate of 2%. Interpret Sharpe ratio.<\/p>\n
Slide 7: Do you have any abnormal (more than 10% per period) changes in price of the stocks from your portfolio? Could you interpret why the stock goes up\/down? What were the most probable drivers?<\/p>\n
Slide 8: If you would be able to go back in time and change the structure of your portfolio would you choose some other stocks?<\/p>\n
Slide 9-11: Any significant information you would like to talk about. <\/p>\n
Slide 12: Conclusions and lessons learned<\/p>\n
Formalities:<\/p>\n
Wordcount: not more than 1500 words for the written report. Report should discuss the same topics as presentation but in a greater detail.<\/p>\n
Cover, Table of Contents, References and Appendix are excluded of the total wordcount.<\/p>\n
Font: Arial 12,5 pts. <\/p>\n
Text alignment: Justified.<\/p>\n
The in-text References and the Bibliography have to be in Harvard\u2019s citation style.<\/p>\n
Submission: Sunday, 8th of May, week 13, time 23.59. <\/p>\n
Weight: This task is a 40% of your total grade for this subject.<\/p>\n
It assesses the following learning outcomes:<\/p>\n
Understand and utilize the principles of risk and return and diversification in the analysis of investments and portfolios <\/p>\n
Appreciate and include the effects of the external environment (political, economic and cultural for both the domestic and global map) <\/p>\n
Identify, analyze, evaluate and select investment choices from among the various types of investments including stocks, bonds, commodities and derivatives<\/p>\n
Construct artificial and actual portfolios using strategies that reflect investment goals and financial conditions<\/p>\n
Rubrics:<\/p>\n
Exceptional 90-100<\/p>\n
Good 80-89<\/p>\n
Fair 70-79<\/p>\n
Marginal fail 60-69<\/p>\n
Knowledge & Understanding (20%)<\/p>\n
Student demonstrates excellent understanding of key concepts and uses vocabulary in an entirely appropriate manner.<\/p>\n
Student demonstrates good understanding of the task and mentions some relevant concepts and demonstrates use of the relevant vocabulary.<\/p>\n
Student understands the task and provides minimum theory and\/or some use of vocabulary.<\/p>\n
Student understands the task and attempts to answer the question but does not mention key concepts or uses minimum amount of relevant vocabulary.<\/p>\n
Application (30%)<\/p>\n
Student applies fully relevant knowledge from the topics delivered in class.<\/p>\n
Student applies mostly relevant knowledge from the topics delivered in class.<\/p>\n
Student applies some relevant knowledge from the topics delivered in class. Misunderstanding may be evident.<\/p>\n
Student applies little relevant knowledge from the topics delivered in class. Misunderstands are evident.<\/p>\n
Critical Thinking (30%)<\/p>\n
Student critically assesses in excellent ways, drawing outstanding conclusions from relevant authors. <\/p>\n
Student critically assesses in good ways, drawing conclusions from relevant authors and references.<\/p>\n
Student provides some insights but stays on the surface of the topic. References may not be relevant. <\/p>\n
Student makes little or none critical thinking insights, does not quote appropriate authors, and does not provide valid sources.<\/p>\n
Communication (20%)<\/p>\n
Student communicates their ideas extremely clearly and concisely, respecting word count, grammar and spellcheck<\/p>\n
Student communicates their ideas clearly and concisely, respecting word count, grammar and spellcheck<\/p>\n
Student communicates their ideas with some clarity and concision. It may be slightly over or under the wordcount limit. Some misspelling errors may be evident.<\/p>\n
Student communicates their ideas in a somewhat unclear and unconcise way. Does not reach or does exceed wordcount excessively and misspelling errors are evident.<\/p>\n","protected":false},"excerpt":{"rendered":"
BBA 325 Portfolio Management Final Assignment: INVESTMENT Simulation individual you have to submit: 12 slides presentation (.pdf or .ppt), and written report of 1000-1500 words (.pdf) 40% of the final grade Investment competition instructions: The closing date of the competition: the date of the class on week 12. Recommended structure of the presentation: Slide 1: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-97749","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/97749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=97749"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/97749\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=97749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=97749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=97749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}