All questions are listed in the attached Word Document.

Date Portfolio Value TradesMade Alpha Beta 11/13/2016 0:00 1000000 0 0 11/14/2016 0:00 989182.502819 14 -1.11 11/15/2016 0:00 992967.876414 14 -0.99 11/16/2016 0:00 997473.92026 14 -0.4 11/17/2016 0:00 1000602.566076 14 -0.57 11/18/2016 0:00 997843.335883 14 -0.62 11/19/2016 0:00 996729.200883 14 -0.62 11/20/2016 0:00 996787.020883 14 -0.62 11/21/2016 0:00 1002986.106497 20 -0.89 11/22/2016 0:00 1004899.216042 20 -0.92 11/23/2016 0:00 1001343.325688 20 -1.36 11/24/2016 0:00 1001401.805688 20 -1.63 Sharpe Ratio 0 0 0.97 0 0.97 0 0.98 0 0.98 0 0.99 0 0.99 0 0.98 0 0.98 -2.1 0.98 1.09 0.98 1.82 0.98 0.21 Date: Cash Related Items Cash Balance: Short Sale Proceeds: Loan Balance: Interest Earn Rate: Interest Charged on Loan: Total Mark to Market Value for Futures: Restricted Funds: Margin Requirements: Portfolio Summary Market Value of Long Positions: Accured Interest Earned on Bonds: Market Value of Short Positions: Net Matket Value of all Positions: Portfolio Value: Percentage Return: Buying Power: Trades Made/Allowed: 11/14/2016 11/15/2016 Market Value Market Value $40,664.88 $40,668.22 $0.00 $0.00 $0.00 $0.00 $82.19 $85.53 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Portfolio Summary Portfolio Summary $939,294.66 $947,752.60 $9,222.96 $4,577.06 $11,675.00 $11,705.00 $950,969.66 $959,457.60 $989,182.50 $992,967.88 -1.08% -0.70% $1,439,998.09 $1,447,050.63 14/386 14/386 11/16/2016 11/17/2016 11/18/2016 11/21/2016 Market Value Market Value Market Value Market Value $40,831.56 $40,834.92 $40,838.28 $49,140.36 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $88.87 $92.23 $95.59 $105.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Portfolio Summary Portfolio Summary Portfolio Summary Portfolio Summary $952,286.54 $955,232.37 $952,270.34 $948,852.67 $4,605.82 $4,660.28 $4,714.72 $4,878.08 $11,765.00 $11,800.00 $11,655.00 $11,560.00 $964,051.54 $967,032.37 $963,925.34 $960,412.67 $997,473.92 $1,000,602.57 $997,843.34 $1,002,986.11 -0.25% 0.06% -0.22% 0.30% $1,452,801.20 $1,454,483.57 $1,451,711.23 $1,463,670.06 14/386 14/386 14/386 20/380 11/22/2016 11/23/2016 11/24/2016 11/25/2016 Market Value Market Value Market Value Market Value $49,144.40 $49,148.44 $49,152.48 $49,156.52 $0.00 $0.00 $0.00 $11,675.00 $0.00 $0.00 $0.00 $0.00 $109.71 $113.75 $117.79 $121.83 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Portfolio Summary Portfolio Summary Portfolio Summary Portfolio Summary $950,582.29 $947,307.90 $947,307.90 $953,424.85 $4,932.53 $4,986.99 $5,041.43 $5,095.91 $11,435.00 $11,775.00 $11,775.00 $11,610.00 $962,017.29 $959,082.90 $959,082.90 $965,034.85 $1,004,899.22 $1,001,343.33 $1,001,401.81 $1,002,646.37 0.49% 0.13% 0.14% 0.26% $1,465,597.37 $1,461,382.67 $1,461,390.75 $1,462,682.93 20/380 20/380 20/380 20/380 Symbol AAPL AMZN ATVID B-GE-5.250-06122017 B-T-6.250-15052030 CRM ESMAX FUSEX GILD GOOG HD HPE LLTC VXF LLTC AAPL AMZN ARR GILD GOOG MA CompanyName Apple Inc. Amazon.com Inc. Activision Blizzard Inc General Electric - 5.25% - Dec 2017 T-BOND 6.250% 15-May-2030 salesforce.com inc. AIM EUROPEAN SMALL CO FD (A) FIDELITY INVESTMENTS Gilead Sciences Inc. Alphabet Inc. Home Depot Inc. Hewlett Packard Enterprise Co. Linear Technology Corporation Vanguard Index Funds Linear Technology Corporation Apple Inc. Amazon.com Inc. Armour Residential REIT Inc. Gilead Sciences Inc. Alphabet Inc. MasterCard Incorporated Exchange Quantity FXRate Currency US 500 1 USD US 100 1 USD US 200 1 USD US 200 1 USD US 150 1 USD US 200 1 USD US 381.6794 1 USD US 6.5539 1 USD US 500 1 USD US 300 1 USD US 200 1 USD US -500 1 USD US 500 1 USD US 500 1 USD US 500 1 USD US -100 1 USD US 100 1 USD US 300 1 USD US -200 1 USD US -100 1 USD US 100 1 USD SecurityType Price BUy $107.76 Buy $745.65 Buy $39.51 Buy $1,040.21 Buy $1,459.61 Buy $72.81 Buy $13.10 Buy $76.29 Buy $76.88 Buy $755.38 Limit Buy $127.04 Short Proceeds $23.35 Buy $60.25 Buy $92.15 Dividends $0.32 Sell $110.07 Buy $765.99 Buy $22.32 Sell $74.45 Sell $762.28 Buy $104.78 CreateDate 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/14/2016 11/16/2016 11/21/2016 11/21/2016 11/21/2016 11/21/2016 11/21/2016 11/21/2016 You have an initial cash balance of $1 million of which 100% is invested in cash. you have complete freedom in your investment decisions but you are only allowed to trade stocks, bonds, mutual funds and/or exchange-traded funds. You have made the following investments (Excel File) over the last few weeks and are limited to 100 transactions. 1. What steps should you take to: a) sell short stocks at least once. b) buy on margin at least once. 2. What do you think this investor's trading philosophy is? 3. On a scale of 1-10 how do you rate the portfolio and why? 4. Do you see enough diversification? If not, what industries/markets should be explored? 5. Are you trading too frequently? 6. If the performance of your portfolio is evaluated on a risk-adjusted basis by taking into account the performance of the market, how well are you doing? (Note: Are you earning profits while limiting risk) 7. Using realized weekly returns, compute the Sharpe ratios of your portfolio and the S&P 500. Compare the ratios and briefly evaluate your portfolio performance based on Sharpe ratios. (Hint: Generate time series columns of weekly returns on your portfolio and the S&P 500 portfolio in MS Excel. Find the mean and standard deviation of the returns for each portfolio. Use the standard deviation and the mean return (to represent the expected return) to calculate a Sharpe Ratio for the trading period. 8. Choose one stock that you bought during this period. Value this stock using a dividend discount stock valuation model (constant growth or multi-stage growth). How does your valuation based on the DDM compare with the traded price? In doing your valuation, you need to make some assumptions (risk-free rate, market risk premium, beta, growth rate etc.)