Project Overview and Goals Acting as a prospective portfolio manager for UBS clients, your potential clients have entrusted you with $1,000,000 to invest at your discretion for a period of 10 weeks. They are expecting you to invest their money wisely and profitably. While your clients desire a high rate of return, their tolerance for risk is considered low. Additionally, your prospective clients are considering other asset managers (your classmates) and will be ranking each according to the success of their portfolio management. You will be able to track how you are measuring up throughout this exercise. At the end of the trading period, if your clients are satisfied with your performance managing their portfolio, they will extend their relationship with you. Specifically, they are concerned about the following criteria: 1. Absolute return: The total dollar increase in the portfolio over the trading period 2. Risk-adjusted return: The return on the portfolio taking into account the level of risk assumed by you. as measured by the Sharpe Ratio 1. Each team has a beginning account balance of $100,000. Commission Value is $10.00. Credit Interest Rate is 3.00%. Debt Interest Rate for Leverage is 6.00%. Minimum Price Limit is $2.00. Maximum Price Limit is $500,000. Trade Volume Limitation is 1.00%. 2. Teams are required to execute orders at least 15 stocks during the period. 3. During the trading round, individuals/teams are required to trading securities using three types of orders (market, limit, and stop-loss orders). 4. Over the trading round, each person/team must take leverage positions (i.e. Buying on Margin) and short-selling positions at least three times. Sources of Information for Portfolio Managers Project Overview and Goals Acting as a prospective portfolio manager for UBS clients, your potential clients have entrusted you with $1,000,000 to invest at your discretion for a period of 10 weeks. They are expecting you to invest their money wisely and profitably. While your clients desire a high rate of return, their tolerance for risk is considered low. Additionally, your prospective clients are considering other asset managers (your classmates) and will be ranking each according to the success of their portfolio management. You will be able to track how you are measuring up throughout this exercise. At the end of the trading period, if your clients are satisfied with your performance managing their portfolio, they will extend their relationship with you. Specifically, they are concerned about the following criteria: 1. Absolute return: The total dollar increase in the portfolio over the trading period 2. Risk-adjusted return: The return on the portfolio taking into account the level of risk assumed by you. as measured by the Sharpe Ratio 1. Each team has a beginning account balance of $100,000. Commission Value is $10.00. Credit Interest Rate is 3.00%. Debt Interest Rate for Leverage is 6.00%. Minimum Price Limit is $2.00. Maximum Price Limit is $500,000. Trade Volume Limitation is 1.00%. 2. Teams are required to execute orders at least 15 stocks during the period. 3. During the trading round, individuals/teams are required to trading securities using three types of orders (market, limit, and stop-loss orders). 4. Over the trading round, each person/team must take leverage positions (i.e. Buying on Margin) and short-selling positions at least three times. Sources of Information for Portfolio Managers
