Students will construct a well-diversified portfolio using an initial investment
ID: 2626495 • Letter: S
Question
Students will construct a well-diversified portfolio using an initial investment stake of $50,000 (the portfolio should use 95% of the fund, but they may not use more than $50,000). Students may include stocks, common or preferred; bonds, corporate or U.S. Treasury bonds; mutual funds, and futures contracts or options. Students will use the closing prices from the first day of the class to determine the price of each issue. Only whole lots of any issues may be acquired; that is, no less than 100 shares of common or preferred stock, no less than five corporate bonds or $10,000 for U.S. Treasury Bonds, no fewer than the minimum required investment for any mutual fund, and no fewer than five contracts for any option or futures position. The settlement date will be the first day of Week Three. Students do not have to use all of the above mentioned securities, but they must use more than one class. Transaction costs are ignored in the creation of the portfolio.
students will write a paper that:
Explanation / Answer
Investment and Portfolio analysis
Abstract:
With the increasing economic downturn in the economy, the need of investment has increased considerable. The potential investors generally foregoes their current leisure and earnings and investment their earnings and expect to earn benefits in future for the same.
For analyzing the investment, we have taken into consideration a hypothetical investor who has $50000 which needs to be invested in different, in different assets.
Introduction:
Investment is one of the most important aspect that is needed which helps in fulfilling different future needs of the investor. There are different assets in which an investor can invest so as to have a future benefits from the required investment. Every investment entails an amount of some risk which is associated. Investment helps in promising the return of the original amount along with an adequate return. So, investment is very important as it helps in fulfilling different future needs of the investor.
Investment is called as