Paper , Order, or Assignment Requirements
Discussion of the long-term personal goals — why are you investing?
- A developed financial plan to meet your personal goals — systematic plan of investing that has as
its objective the accumulation of a set amount of money at a future date. Requires preparing a
short-term and long-range budget.
- Evaluation of the consequences of contingencies for your long-term goals and financial plan —
review and plan for problems such as poor health, disability, death, or loss of job.
- Explanation of how you built your portfolio to meet your financial goals:
o The decision between personal vs. professional money management. For Stock-Trak
“professional” management is limited to mutual funds.
o Discuss your personal preferences for risk and expected return.
o Explain how you establish portfolio objectives and construct a diversified portfolio to meet
those objectives. Some portfolio objectives include: growth, income, liquidity, and balance.
o Explain how you incorporated asset allocation principles into your portfolio.
o Explain how you plan to conduct periodic reviews and evaluation of your portfolio.
- Analysis of weekly holding period returns for your portfolio and S&P500 benchmark.
- Calculation of ex-post risk measures for your portfolio and S&P500 benchmark (betas, standard
- Risk adjusted performance analysis. (Sharpe, Jensen, Treynor and appraisal techniques).
- Discussion of the performance of your portfolio in terms of security selection, market timing, and
diversification (performance attribution procedure).
- Discussion of risk management techniques you utilized.
- Discussion of overall evaluation of investment performance.