Reference no: EM132486499

FIN 4113 Investments and Derivatives Group Project

This is a Group Project - to be completed by between 2 - 3 Group Members (Not More). The Group Project is divided into two (2) Sections: A and B, with the following weighted marks:

a) Data Mining and Data Analysis [Yahoo Finance Platform]

b) Group Project Report: Data Analysis and Interpretation [Portfolio Visualizer Platform]

Section A: MSFT and S&P 500 Data Mining / Analysis / Cleaning

Section A is the data mining / data analysis / data cleaning component, that seeks to enhance students' knowledge and ability to mine, analyze, clean and present data from a trusted live-data trading technology platform .

You will need to go to the Yahoo Finance and search for Microsoft Corporation using the ticker symbol MSFT: Once you have accessed MSFT data perform the following actions and save your data / information in an academically presentable format as part of your Group Project:

a) Click on company Profile tab What is MSFT's main line of business? Who is MSFT's CEO? What other companies do people following MSFT also keep under their watch?

b) Now click on the Statistics tab. How many shares of the company's stock are outstanding? What is the total market value of the firm? What were its profits in the most recent fiscal year?

c) Click on the Holders tab. What fraction of total shares is held by insiders and institutions and how many institutions hold MSFT shares?

d) Click on the Analyst Opinion. What is the average price target of the analysts covering MSFT? How does that compare to the price at which the stock is currently trading at the NASDAQ? In a tabular format, present the earnings estimate for four (4) quarters stretching into 2021 under the following headings:

1) Number of Analysts

2) Average Estimate

3) Low Estimate

4) High Estimate

5) Year-Ago EPS

e) Look up MSFT's balance sheet under the Financials tab. What were MSFT's total assets at the end of the most recent fiscal year?

f) Now go to Chart. Click on the 5-year chart. Download and save the 5-Year Chart. What does the 5-year chart indicate to an investor? Is the stock profitable or not?

g) Click on 2-year chart. Download and save the 2-year chart. What does the 2-year chart indicate to an investor? Is the stock profitable or not?

h) Click on the Max Chart. Download and save the Max Chart. What does the Max chart indicate to an investor? Is the stock profitable or not?

i) Imagine you bought 10,000 MSFT shares on January 1 1986 and you held the shares on a passive strategy up to today. What profit or loss would that have generated for you at today's share price?

j) Click on Historical Data. Change the Time-Period to Max; Show: Historical Prices and Frequency: Daily. Click on Apply. Download this data to an Excel File. Clean the data and delete columns leaving only the "Date" and "Adj Close" columns. Save your file as MSFT - Excel. Submit the Excel File to your Professor for assessment when you submit the Group Project.

k) Search for S&P 500. Click on Historical Data. Change the Time-Period to Max; Show: Historical Prices and Frequency: Daily. Click on Apply. Download this data to an Excel File. Clean the data and delete columns leaving only the "Date" and "Adj Close" columns. Clean the data and delete columns leaving only the "Date" and "Adj Close" columns. Save your file as MSFT - Excel. Submit the Excel File to your Professor for assessment when you submit the Group Project.

Section B: Gratuity Fund Report

Assume that you are in a team of between 2 - 3 (Not More) members who have been appointed as investment analysts, by the Dubai International Financial Centre (DIFC). You mandate is to manage the $1 billion Gratuity Fund for expatriates working in the UAE. Assume the Gratuity Fund was started in 1972. You are required to recommend an investment portfolio of different assets for the Gratuity Fund, using the knowledge, models and theories learned from the Investments and Derivatives Course. Your main duty is to evaluate a range of assets classes and markets using the Portfolio Visualizer platform. While not necessary, you can also exploit financial data and other relevant information from Yahoo Finance, Morningstar, Bloomberg and other financial databases, to identify, determine and allocate appropriate asset classes and securities to be included in the investment portfolio. To diversify the portfolio, you are permitted to invest in any asset, country, market capitalization, investment style (passive or active, value, growth or balanced) as given by the Portfolio Visualizer platform, as long as your decision-making optimizes investor returns for the Gratuity Fund.

Assessment areas to be covered are given below:

Assessment Areas

1. Unique Needs Assessment

2. Investment Objective (High Capital Growth Objective, Capital Growth Objective, Balanced, Objective and Income Objective)

3. Risk Appetite - Risk Averse, Risk Seeking and Risk Neutral (High Risk, Medium Risk and Low Risk)

4. Strategic Asset Allocation / Portfolio Diversification

5. Security Selection / Portfolio Diversification

6. Tactical Asset Allocation / Portfolio Rebalancing - Active Strategy (Market Timing) - Passive Strategy

7. Portfolio Performance Monitoring / Evaluation

The age profile of the Gratuity Fund helps you with the risk profile, investment objective and whether the major component of the portfolio will be in long-term, medium-term or short-term assets.

Your analysis and investment strategy proposal should:

1. Analyze investment opportunities that align with the financial goals of the Gratuity Fund.

2. Recommend specific investments to create a portfolio from the available capital of $1 billion.

3. Evaluate the risks of the recommended investments and the impact that diversification, inflation, and currency fluctuation could have on the proposed portfolio.

4. Simulate projected rates of return on each item in the proposed investment portfolio

5. Recommend strategies for long-term and short-term investment; include justifications for the recommendations you make in line with the age profile and other constrains

Note - For this project report, write a 2,000 - 2,500 word analysis and portfolio management report.

Attachment:- Investments and Derivatives Group Project Files.rar