Question
Create a portfolio of 4 assets into which you will invest the $100,000 I am giving to you for this exercise. Use the closing prices/NAVs
Create a portfolio of 4 assets into which you will invest the $100,000 I am giving to you for this exercise. Use the closing prices/NAVs of November 1 to purchase shares. Recall from the syllabus: Each team will be entrusted with $100,000 from a fictional client. A team will invest it in 4 assets either stocks or mutual funds and each team will track the performance of this portfolio throughout the semester. One of the 4 assets must be an equity mutual fund, one must be a bond mutual fund, and one must be an individual company stock. The other asset can be any fund or stock or ETF. To select a stock, the company must have market capitalization of at least $400 million; for funds, it must have $400 million under management. You can allocate the $100,000 among the 4 assets any way you wish, including taking short positions. Short proceeds MUST be reinvested in one or more of the other 3 assets. No adjustments to your portfolio will be made once it is formed.
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