Q1. For the final project students will develop and manage a stock portfolio on the virtual stock exchange website. Students are being asked to invest a total of $100,000 with this portfolio. Students can only keep 20% of the portfolio in cash; you can also purchase stocks using a margin account as well. The final project will be submitted during the last week of the term. The final deliverable will be a document that is less than 25 pages in length and formatted using APA 6th edition guidelines. The paper should include the following items:

1. Goals for the portfolio state the goals for the portfolio. These goals should highlight information like the desired return rate, types of allocations, and level of risk tolerance.

2. Investment philosophy state the overall investment philosophy that the portfolio will be utilizing. This information would include things like how investments are evaluated, approaches used to achieve a diversified portfolio (if that is a goal), approach to managing risk, and overall trading strategy.

3. Discussion of implementation this information will include information about the initial investments, trades that were made during the duration of the project, and the final holdings at the end of the project.

4. Evaluation of the strategy assess the effectiveness of the investment philosophy by comparing the goals for the portfolio to the actual results.

5. Reflection conclude the project by reflecting on what you learned from the exercise.

This project will be assessed using the following rubric:

Spelling/Grammar/APA formatting 10% - no more than 5 errors

Goals of Portfolio 15%

Investment Philosophy 20%

Implementation 15%

Evaluation 25% Reflection 15%

Q2. For this project you will be providing investment advice to a Chris and Krista. These individuals have been married for 5 years and are 33/32 years of age; additionally they have a 3 year old child and they just found out that their second child will arrive in about 8 months. Chris and Krista recently received an inheritance of $150,000. After paying off all of their students loans, credit cards, and car loans they have a total of $100,000 in cash left. They do own a home and have a mortgage of approximately of $150,000. They had always focused on paying down debt rather than saving for their kids college or retirement. Since receiving the inheritance they both have started contributing the maximum to their 401(k) plans. They feel that the inheritance should be invested to help with the kids college and then their retirement.

They are turning to you as their investment adviser. Over the next six weeks you will be helping them to create a diversified investment portfolio that meets their goals.