Hello, I need help with my assignment. The requirements are in the file.The project 1 will be uploaded for reference. Thank you.

FUND MANAGEMENT SIMULATION PROJECT ONE Due Date: Jan 23rd 01 02 Item Name Benchmark Passive Fund Active Fund LJM Balanced Fund LJM Growth Fund Returns is at least 5% At least 20% above the performance of S&P above the risk free rate 500 03 04 05 Initial Asset Allocation Risk Level Targeted Investors 06 Objectives of Funds 07 Constraints of Funds 70% in S&P500 30% in bonds Midum Midum risk investors Targets risk adverse investors such as parastatal and government employee in their prime age. Contractual employees and retirees under pension. Institutional investors who wants to earn market return To follow the movement of S&P500 and thus provide investors with the actual return of investing in US traded stock market At any time, the fund must: 08 Initial Sectoral allocation 09 Stock Selection Strategy 10 Initial Stock Filtering Trading technical 11 70% in stocks, 30% bonds High Young business individuals High income earners Risk taker investors mostly entrepreneurs Institutional investors To outperform the S&P500 index with 20% by investing in stocks with great growth potential. At any time, the fund must: the value of the investment never fall have no exposure in below the initial investment derivatives; assets remain within 10% of original be limited to US stocks allocation only; not allow one stock to take up more than be limited to a 20% of the portfolio maximum of 25% of size of fund in fixed income instruments; have minimum 5% cash holding As per S&P500 Health Care Industrials Info Teck 80% of the investment will Top Bottom Approach be invested in S&P500 1. Economy 2. Industry 3. Stocks At least 6% weightage Maximum free float of 20% on S&P500 Not applicable Moving average Turn up the volume analysis tools Rationale Fund Names: We have two funds: LJM Balanced Fund and LJM Growth Fund. The Conservative fund about getting New Zealand clients the benefit of the achievement of the biggest 500 companies within the USA. On the other hand, the growth fund has high risk and is about investing in young companies. These two funds are designed to target clients with either high risk or low risk preferences. Benchmark: The balanced fund is going to be compared to the US three-month Treasury bill. On the other hand, the growth fund will be compared to S&P500. Initial Asset Location: The asset allocation of the balanced fund is 70% stocks and 30% bonds. There is less emphasis on debt instrument since the stocks of S&P500 are not considered risky. On the other hand, the growth fund, which has the same asset allocation, invests in young companies with high potential growth, which can be considered risky. Risk Level: The balanced fund has a medium level of risk while the growth fund has high level of risk. The return of the growth fund is expected to be higher than the balanced fund. Targeted Investors: The balanced fund offers a medium-risk, which can be appealing to medium risk investors, families and Institutional investors who wants to earn market return. This fund can be similar to conservative funds; however, with higher returns. On the other hand, the growth fund can be appealing to young investors, high-income earners, risk takers and institutional investors. This fund is aimed at investors who can bear more risk than the balanced fund's investors. Objectives of Funds: The objective of the balanced fund is to provide investors with consistent, medium risk returns. The Growth Fund has the objective of investing in companies with great growth potential to gain return that is 20% higher than S&P500. Constraints of Funds: The balanced fund includes constraints of having bonds that should have no exposure in derivatives, be limited to US stocks only, limited to a maximum of 25% of size of fund in fixed income instruments, and have minimum 5% cash holding. On the other hand, the growth fund value shall never fall below the initial investment; assets remain within 10% of original allocation, and not allow a stock to take up more than 20%. Initial Sectorial Allocation: The balanced fund invests in S&P500 companies. However, the growth fund invests in Info Tech, Health Care and industrials sectors. Stock Selection Strategy: The balanced fund will be using passive investment style and will invest in S&P500, which can be the best index that represents all the American stock market. The growth fund will select young companies with high growth potential. Initial Stock Filtering: The balanced fund is filtered based on having at least a 6% weightage on the S&P500. The growth fund has to meet the criteria of having at least 20% of its shares as free float. Trading technical analysis tools: This does not apply to the balanced fund; however, Moving Average Tool or turning up the volume will be used with the growth fund. FINA312 / FINA517 - 16S FUND MANAGEMENT SIMULATION PROJECT INSTRUCTION FOR REPORT 02 Following the instructions for Report 01, you will now have a solid background and foundation needed to proceed for both passive and active funds that you have setup. The 11 items that you have filled in will guide you to perform the next steps, the securities selection which is the integral part of this Report 02. You may start investing by choosing the stocks and/or bonds and include them in your Yahoo finance portfolios. Note that the stocks and/or bonds for your passive fund and active fund may be the same, may be slightly different, or may be completely different based on the specific objectives of each of the funds. It is important for the student to understand that it is not mandatory for you to invest all the funds in stocks and/or bonds. Obviously, the objective of a passive fund is to mirror the movement of a stock market index, thus you should be investing a significant portion of the passive fund in stocks that will mirror the performance of the index. However, for the active fund, if you think the stock market is not promising presently and likely to go down, you can save a large portion of the funds in money market instruments and wait until the stock market is likely to rise. Remember that for active fund, the objective is to outperform a stock market index, thus if you think the market is going down, you should not invest heavily in the market. While choosing the stocks and/or bonds for your portfolios, please answer the questions below and submit your report using MyWeb submission. For the passive fund, you are required to answer the followings:1. How many different stocks will you have at the setting up of the fund and why? For example, as for my WMS Index Fund, I wish to invest in 10 different stocks and the reason is because I believe that I can setup a passive fund that can follow the movement of NZX50 by investing in only 10 stocks that have the highest weighting in NZX50. 2. What is the main criterion that you will use in selecting the stocks and why? For example, as for my WMS Index Fund, the main criterion that I will use is highest market capitalization as at December 31, 2011. The reason is because the market capitalization of the stock will have a significant impact on the weighting of the stock in NZX50. 3. Based on the main criterion in (2) above, what are the stocks that you include in your portfolio, how many shares of each stock that you purchase, and at what price? At this point, please use Yahoo Finance to complete the question. 4. What are the selections of fixed income instruments that you will invest in the fund, if any? For example, as for my WMS Index Fund, I may say that I do not wish to invest in fixed income instruments because any investment in such instruments will increase the tracking error of the fund. 1 5. How much is the cash portion of the fund, why, and where will you invest the cash portion? For example, as for my WMS Index Fund, I may say that at the initial stage, I will keep 5% or $250,000 in cash and the reason is because the fund needs to have some cash to pay for possible redemptions from investors. I will place this portion in ANZ Bank term deposit for 1 month that presently pays 5.00% per annum. For the active fund, you are required to answer the followings:1. How many different stocks will you have at the setting up of the fund and why? For example, as for my WMS Growth Fund, I wish to invest in 10 different stocks and the reason is because I believe I can effectively monitor 10 different stocks where I can actively do trading activities on these stocks. 2. What is the main criterion that you will use in selecting the stocks and why? For example, as for my WMS Growth Fund, the main criterion that I will use is average daily volume of at least 100,000 shares. The reason is because I wish to invest in stocks that are actively traded so that the fund will not get stuck with stocks that I want to dispose. 3. Based on the main criterion in (2) above, what are the stocks that you include in your portfolio, how many shares of each stock that you purchase, and at what price? At this point, please use Yahoo Finance to complete the question. 4. What are the selections of fixed income instruments that you will invest in the fund, if any? For example, as for my WMS Growth Fund, I may say that I wish to invest 20% or $2,000,000 in bonds listed on the NZ Debt Market and be limited to 2 different bonds only of $1,000,000 each. At this point, please use Yahoo Finance to complete the question. 5. How much is the cash portion of the fund, why, and where will you invest the cash portion? For example, as for my WMS Growth Fund, I may say that at the initial stage, I will keep 5% or $500,000 in cash and the reason is because the fund needs to have some cash to pay for possible redemptions from investors. I will place this portion in ANZ Bank term deposit for 1 month that presently pays 5.00% per annum. For this report (FMSP Report 02), please focus on your stock selections. The stock selections for passive fund should be different from active fund although there may be some similar stocks in both funds. Please include the username and password of your Yahoo Finance account that your group have set up for the purpose of this subject. You should submit your report using the Web Submission. Thank you. ALL THE BEST. 2 YAHOO FINANCE 2013 - Instructions and Guide Description This document provides steps for creating a portfolio on Yahoo! Finance. Resolution How to create a portfolio: 1. Navigate to the Yahoo! Finance homepage and sign inA "Sign In" link appears in the upper left portion of the page to your account. 2. Hover your mouse pointer over the My Portfolios tabs. 3. Select Create Portfolio. 4. Type a name into the Portfolio Name text box. 5. Do one of the following: If you do not know a company's ticker symbol: Place your cursor in the "Company or Symbol" text box. Begin typing a company name and the search assist will show matches. From the list that appears, click on an appropriate item. Once the ticker appears in the text box, click Add Symbol. Repeat as necessary. If you do know a company's ticker symbol: Place your cursor in the large text box below the "Company or Symbol" text box. Begin typing a ticker. Separate multiple tickers with spaces or commas. 6. To add market indices, check the appropriate boxes below the "Add market indices" heading. 7. Select an appropriate view from the Default View drop-down menu. 8. Select appropriate "Advanced Settings". 9. Click Save. How to access the new portfolio you just created: 1. 2. Hover your mouse pointer over the My Portfolios tab. From the drop-down menu, select the portfolio you would like to view. Note: If your portfolio does not appear in the "My Portfolios" drop-down, make sure that you are signed in to your account. Additional Information Once you have created a watchlist portfolio using the above steps, you can convert it into a transaction portfolio. 1 Description This article describes how to make a transaction portfolio. This involves converting a watchlist portfolio to a transaction portfolio. Resolution To add a transaction history to an existing watchlist portfolio, please follow these steps: 1. Open one of your existing watchlist portfolios. To access your portfolios, mouse over the My Portfolios tab on the Yahoo! Finance homepage, and select a portfolio. 2. Once the positions view has loaded, click Edit to the right of the portfolio name. 3. Scroll to the bottom of the "Edit Portfolio page and click Add transaction history. 4. On the "Convert Portfolio" page, enter the information you would like to track: Shares and Price Per Share are required. Trade Date, Comments and Notes are optional. Any symbols for which you exclude share or price data will not be included in the portfolio after you save it. You can also adjust the amount of cash in any of the cashlines in your portfolio in the "Amount" column. For more information about cashlines, please refer to this article. 5. Click Continue. 6. Click Convert. Your Yahoo! Finance account will now have a transaction portfolio with the original name of the portfolio you just converted, and it will have an exact copy of the basic portfolio that you converted from, which will now be named "[Portfolio name] (old)" -- without the square brackets. Description This article provides information about changing or configuring Advanced Settings for Yahoo! Finance Portfolios. Resolution To use Advanced Settings, please do the following: 1. Login to Yahoo! Finance. 2. Open one of your portfolios. 3. Click the Edit link to the right of the portfolio name. 4. 5. On the "Edit Portfolio" page, in the "Advanced Settings" section, the following settings will be available: Portfolio currency Consolidate multiple lots of the same symbol into one entry when viewing portfolio. Sort positions alphabetically by symbol. Click Save to commit any changes. 2 Note: if you do not see the "Consolidate multiple lots" checkbox, you're using a transaction portfolio. Click the transaction portfolio edit page link to review the following options: Consolidate multiple lots of the same symbol into one entry in my position view. Sort positions alphabetically by symbol, not in the order transactions are entered. Hide cash in Positions and My Yahoo! view. Don't show portfolio total value on My Yahoo! pages. Include this portfolio in Yahoo! Money Manager. Additional Information To use Advanced Settings, holdings information must be added to your portfolio. 3 Description This document provides information about the cash line in a transactional portfolio. It also discusses reasons why the cash line may display a negative value. Resolution Yahoo! Finance transactional portfolios feature a $$CASH line. When the cash line is visible, this row will display the sum of your cash transactions minus the purchase value of your current holdings. The different transaction types available will affect the cash line in different ways. The most common transaction types include: "Buy"/"Sell" - These debit/credit the cash line. "Shares In"/"Shares Out" - These do not debit/credit the cash line. "Cash In"/"Cash Out" - These debit/credit the cash line. When a transactional portfolio is first created, the initial cash value is set to $0. Any "Buy" transaction that is created will debit the cash line, thus causing the cash value to become negative. If no "Cash In" transaction has been created to offset the purchasing of shares, the cash line will continue to become more negative with each subsequent "Buy" transaction that is created. To balance the cash line, a new "Cash In" transaction must be created. This "Cash In" transaction should equal the purchase value of the shares that you own or have purchased. Refer to the following steps for instructions on how to create a "Cash In" transaction: 1. Login to your Yahoo! Finance account and open a transactional portfolio. 2. Click View Transactions. 3. Click the Create Transaction link that appears on the right side of the page. 4. Click Cash in the "Transaction" row. 5. Enter a valid date. 6. From the "Type" drop-down, choose Cash In. 7. Enter the cash amount in the "Amount" field. 8. Enter a note (optional). Notes can be up to 40 characters in length (letters and spaces). 9. Click Save. Note: Inputting a value that matches the debt displayed on the cash line will only be accurate if all transactions are of the "Buy" type. "Sell" transactions also serve to credit the cash line. To account for the portfolio's value accurately, it is best to calculate the sum of all "Buy" transactions and use this value to inform your "Cash In" transaction. Alternately, individual "Cash In" transactions can be created to offset individual "Buy" transactions. 4 Description This article explains where streaming quotes are located, and how to customize and manage them. This also covers the scrolling Ticker Tape. Resolution Streaming quotes (which include the ticker tape you see moving continuously across your screen) are the stock quotes and exchange data (such as last price, trade time, bid/ask, volume, and absolute/relative change) that update automatically while the markets are open. Streaming market index Streaming quotes are free to all Yahoo! users, but you might experience some delays. If you prefer to have real time continuous streaming quotes with no delay, you can sign up for our premium service, known as Yahoo! Real-Time Quotes (which includes MarketTracker). Streaming quotes are available on the following pages: Yahoo! Finance front page Quote summary page as well as all associated pages Multiquote page Portfolio page Market times information All international data streams (whenever those markets are open) Streaming quotes are normally on, but you can turn them off or on again at any time. Simply click ON next to "streaming quotes" to turn them off (the word ON changes to OFF). Conversely, If you wish to turn them on, then click OFF . You can also turn streaming quotes (scrolling) on or off from the streaming quotes settings box. To display it, just click the Settings menu to the right of the ticker tape to display it. Within the box you can also change the speed at which they move and which quotes you want displayed. Note: Quotes stop streaming if you have not clicked or entered data within a Yahoo! Finance window for 25 minutes. Just click within any finance page to restart streaming. 5 Description This article explains how to edit, delete, or change the default view in your Yahoo! Finance Portfolios. Resolution To edit a Portfolio: 1. Sign in to Yahoo! Finance to access your Portfolios. 2. Hover your mouse over the My Portfolios tab and select the Portfolio you wish to modify. 3. Click the Edit link that appears to the right of the Portfolio name. 4. 5. Make changes to any of the fields you'd like to update (See the list below for more information about what you can change). Click Save. From the "Edit" screen, you can make the following changes: Change the default Portfolio view: Click on the drop-down under "Default View," and select the desired view. Edit the advanced options: Any changes made in "Advanced Settings" will only take effect if you have added holdings information to your Portfolio. Delete the Portfolio: Click Delete this Portfolio at the bottom of the page. Note: Again, be sure to click Save after entering any of these changes in order for them to be applied. If you would like to add or delete a ticker, you can do that from the Portfolio's main page. 6