The main goal of the project is to create a theoretical portfolio for yourself or someone that you know, as a client

of yours. You are taking the role of an investment planner in this exercise. This will involve choosing stocks and

estimating their value, buying mutual funds, and understanding what choices you need to make and what

behavioural biases you may exhibit. Your hypothetical portfolio will start off with CAD $1,000,000($one million

Canadian dollars$).$

In your proposal, you will need to provide the following:

$1.$ A description of your client. This should be fairly basic, but give an idea of what kind of risk tolerance they

have as well as their goals and personal situation. Think of this as an investor policy statement. $(5)$

$2.$ An explanation of one behavioural bias exhibited by your client. Clearly explain how this will affect your

client$$s investment portfolio and how you might help them to deal with it$.(5)$

$3.$ Ten companies that you want to include in your portfolio. These can be chosen from any stocks listed on the

Toronto Stock Exchange. Make sure that at least one of the companies pays regular dividends $($since you will

value it in the next part of the project$).$ Clearly explain why you chose these companies. If you chose a bank, for

example, then why did you choose that specific bank instead of a different bank? $(15)$

$4.$ What sources of data you will use. This should be as detailed as possible. This might include specific websites,

databases, or other research sources. See the $7$th bullet below. $(5)$

$5.$ Five mutual funds that you want to include in your portfolio. These can be any fund that is available in

Canada. Clearly explain why you chose these funds. For example, if you choose a bond fund$$why did you

choose this particular bond fund over any other? You MUST show the $3$ attributes of your chosen funds $$ NAV,

MER and its risk rubric. $(15)$

$6.$ An estimate of the beta of one of the chosen stocks. Estimate this yourself, using the tools discussed, and

compare it with an estimate that you find online. $(10)$

$7.$ A valuation of one of the $10$ chosen companies, using the Dividend Discount Model. Make sure to clearly

explain your assumptions and the sources of data used. Again, compare your estimated price with the actual

price and explain the difference. $(10)$

$8.$ A summary of your asset allocation, including a chart and a justification for why the allocation suits your

client. You can allocate the $$1,000,000$ between the $10$ stocks and $5$ mutual funds I must be able to see how

many stocks or funds you bought at what price$/$NAV$.$ See the $4$th bullet below. $(10)$

$9.$ A description how the fund performed over the past $12$ months. This is a unique opportunity to look at

performance without having had to hold the assets. This may include some qualitative discussions $($such as any

news which might have affected prices$),$ but should also include quantitative measures such as Sharpe ratio and

a comparison to an appropriate benchmark. Include a chart with the performance of your portfolio and of the

benchmark on the same axes. $(20)$

$10.$ A discussion of what you learned from this course in general and the project in particular, as well as any

challenges you faced and how you overcame them. $(5$