Virtual stock exchange portfolio management project

Assignment Help Financial Management

Reference no: EM132001420

Virtual Stock Exchange Portfolio Management Project

Purpose

The purpose of using Virtual Stock Exchange is to give you a better understanding of trading strategies and portfolio management. You will also learn a variety of financial instruments and their risks and rewards as they apply to asset management.

The grading on this will be primarily based on a 3-page short essay describing your experiences.

Your portfolio performance, if outstanding, can be taken into account also. The trading period is 2/5/2018-4/27/2018. Some degree of diversification is required, so you can’t put more than 25% of your balance into a single security. It is required that you make at least a trade every week during the entire trading period.

Final Virtual Stock Exchange Project Paper

A three-page, double-spaced paper about your Virtual Stock Exchange experience will be due by May 1, 2018. Please address the following:

Which positions exceeded your expectations? What conditions caused this?

Which positions underperformed for you? What factors created the performance gap?

What are the key things you learned from your Virtual Stock Exchange experience?

How will your Virtual Stock Exchange experience influence your personal investing in the future?

Project Overview and Goals

Acting as a prospective portfolio manager for UNO clients, your potential clients have entrusted you with $100,000.

They are expecting you to invest their money wisely and profitably. While your clients desire a high rate of return, their tolerance for risk is considered low.

Additionally, your prospective clients are considering other asset managers (your classmates) and will be ranking each according to the success of their portfolio management. You will be able to track how you are measuring up throughout this exercise.

At the end of the trading period, if your clients are satisfied with your performance managing their portfolio, they will extend their relationship with you.

Specifically, they are concerned about the following criteria:

Absolute return: The total dollar increase in the portfolio over the trading period.

Risk-adjusted return: The return on the portfolio taking into account the level of risk assumed by you, as measured by the Sharpe Ra assuming you are doing a stock exchange , or rather putting yourself in my shoes, write an analysis of the following,

1. Which positions exceeded your expectations? What conditions caused this?

2. Which positions underperformed for you? What factors created the performance gap?

3. What are the key things you learned from your Virtual Stock Exchange experience?

4. How will your Virtual Stock Exchange experience influence your personal investing in the future

I invested in the following stocks, which gave a negative return because i could not predict whether their share prices could increase because finally they increased (UBNT, MULE, VYGR, X among others). similarly, i invested in the following stocks which gave a positive return (DIN, WAAS, RKDA, NYRT, TENX). My overall returns was a negative having lost $5000 dollars from the original virtual $100,000 dollars. it was a class work and i remained position 32 in the class at the end of the stock exchange period. So I need to write my stock experience during the trading period and answer the positions that exceeded my expectations, the factors that created the performance gap and underperformed for me, i guess for example the inaccurate choosing of stocks to trade in and wrong predictions etc, the key things that i learned from the virtual stock exchange experience like how to trade and how i can start trading with real money etc, and the last question on how this will affect my investments in the future. I mean you just read it and give a comprehensive overview.

Reference no: EM132001420

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