Reference no: EM133492135
Assignment:
The Investment Simulation assignment's goal is to demonstrate the students understanding of investment strategy and financial products. Please do this on an Excel or Financial spredsheet. There are two parts to the assignment:
1) There you are being put in the position of a financial advisor. There are four different clients / scenarios reflecting individuals and their current life profiles (single, married, children, retired, etc.) and financial positions. Your job is to construct an investment portfolio that you believe will best serve these individuals. Each portfolio may include investment vehicles (Mutual Funds, ETF, Individual Stock & Bonds, etc.).
There is not one clear correct answer when selecting investment portfolio vehicles and structure. I am looking for students thought process and understanding of portfolio structure and product(s) knowledge. The assignment is NOT a contest among students as to who has the best total return on investment for the three months of this course. It is often the case with investments that you can be completely right in the long term, but loss money the short term.
The two page spread sheet worksheet is very basic. It is presented that way so that students can structure the worksheet to fit their portfolio's unique design. It is flexible. As this is an online course, it is assumed that students have a level of spread sheet knowledge. (I don't' expect the average student to be a "financial model jockey"). If a student doesn't have a basic knowledge of a spread sheet, this is an opportunity to learn.
2) The second part of the assignment is to enable students to select investments for their own account. Here you enter on the spread sheet the individual investment you would make today if you had $50,000 to invest. Think of it as your money, NOT PLAY Money. Your individual profile and risk profile might include such higher risk investments such as a micro-cap biotechnology company or a small foreign gold mining company. On the other hand you may favor a World-wide total international large capital company ETF. It is up to you. If you like Face Book (FB), GE, Google, or other companies, then invest in them. If you like Treasury or corporate bonds, also invest in them. If you don't wish to diversify, and then do as you wish...it is your money.