I am a portfolio manager in an investment company (can be a mutual fund, or a pension fund, hedge fund, private equity firm, or any we may imagine). I have $1 million to invest for my fund.

Goal of the project: To Learn and Apply the basic tools and skills In Investment Analysis

Assets Available for investment: Stocks

Portfolio Goal: (I need to choose one), Capital Appreciation, Capital Preservation, Income, or any objective I may define

Portfolio Selection Strategies: Risk and Reward Specification

Data recording and analysis:

I need to download weekly stock price data of my stocks

I need to calculate weekly portfolio returns and standard deviation

Performance Calculation and Analysis: I need to calculate Sharpe ratio for our portfolio

• I need to compare the portfolio Sharpe ratio with that of the market portfolio (I can use the S&P500 portfolio as a proxy for the market portfolio)
• I need to prepare our report: I will prepare a report that includes an Introduction of my portfolio, description of the stocks in our portfolio, any major news that moves my stocks, explanation of any theory I applied, the data sources, weekly and overall results, and my conclusion.
• I need to include everything, Excel calculation, in a word document.

Assessment Matrix:

Portfolio setup: 30%

Weekly Data Analysis: 30%

Application of investment theory: 40%

To summarize,

Part 1: data collection. The data I need: 1) Weekly data for my stocks 2) Weekly data for S&P 500 What stocks to choose for my portfolio? I may use Yahoo Finance, stock "Screeners" for selecting the stocks. I may choose my own criteria to choose my stocks. Then I click Historical Data. I then click Weekly for frequency. I then click the S&P500 index to get the historical data for S&P500 index as a. To find T-bill rate for risk free rate proxy, I google it.

Part II Portfolio performance Computation I now put all the data in an Excel file. I may open the Excel file to check the formula for the calculation of average returns, standard deviation, Sharpe ratios, CAPM calculation, and alpha returns. I can divide the fund among the investments equally. or I distribute different percentage of my fund to my stocks. To prepare my report, Slideshare.net. Investment Analysis Project" in the search bar. My explanation has to be clear and to the point.