Thinking Quantitatively Assignment #3: Stock Portfolio

In last week's discussion board we talked a lot about diversification and how it is important to not put all your eggs in one basket. You have $10,000,000 to invest in the stock market into a well-developed and profitable portfolio. In this project you will use the concepts and guidelines in chapter 11 to construct an investment portfolio. You must choose at least 10 stocks to purchase with at least 1 fund. Use websites such as www.cnbc.com, yahoo finance or www.marketwatch.com to research stocks and mutual funds (ETFs to research your stocks. There are two parts to this project. The first part is analyzing the individual companies you have purchased for your portfolio and the second part focuses on the make-up of your portfolio.

Company Information: Use this template to create an info sheet for each of the companies you purchase stock for.

• Name
• Stock ticker
• Beta
• Sector (s)
• Stock is listed on what market
• Price bought at and date
• Number of shares bought
• Total cost for purchase
• Calculate the expected for the stock using the CAPM
  • RFR: Current 10 year Treasure Yield
  • Market Risk: The Year to Date (YTD of the market the stock is listed on)
• Explain why you purchased this particular stock for your portfolio

Portfolio Information

• Name the portfolio.
• Calculate Weight of Portfolio for each company.
• Calculate the expect return for the portfolio.
• What is your portfolio strategy?
• Why should someone consider purchasing your portfolio?