The project for this semester is about putting a portfolio together. The portfolio will be based on:

Asset allocation

Beta$/$Standard Deviation

Valuations

Return

To make this project about performance only would encourage gambling in the stock and bond markets and that is not what we are here to do$.$ We are here to make fundamentally sound investments with the tools we have in this course.

Therefore, please put a portfolio together of any investments you would like using different types of mutual funds; large cap, mid cap and small cap, growth and$/$or value, international, domestic, emerging markets.

Bonds; investment grade, high yield or emerging market. I recommend mutual funds as the risk analytics are easier to find.

Any asset allocation you want and explain why you like the allocation. Illustrate a $3,5,7$ and $10$ year performance of the portfolio with the beta and standard deviation. We are looking at risk adjusted returns. Clearly making $10\%$ is better than making $8\%$ but taking on twice the beta or standard deviation to make the $10\%$ may not be better.

This is to get you familiar with what you may be asked to do for a client. Let$$s practice here so you are prepared when someone is going to pay you a fee to put their money at risk.

I need an idea of how to start this project