Word Limit:

900 to 1,500 words

Suppose a budget of HK$1,000,000 is used an investment simulation.

Starting from: 2 March 2020, you can form a portfolio from the stocks available from the Hong Kong Stock Exchange ignoring all transaction costs such as broker age commissions. For simplicity, you are advised to choose 3 to 5 securities (1 security per student) in your portfolio.

Unless you have very strong justifications, it is advisable to choose Hong Kong equities only since this simulation is not intended to focus on sophisticated trading strategies involving derivatives products such as options, futures & warrants.

Your justification should include consideration of risk & return, industry analysis, and diversification etc.

The simulation will start from 2 March 2020 (Monday) and last until 31 March 2020 (Tuesday).

You can buy or sell the stocks anytime during this period (but all transactions should be made on closing prices basis, ignoring transaction costs). Every time you reshuffle your portfolio holdings, you should also write a brief note with justifications in not more than 1 page.

Finally, Security Analysis & Portfolio Management should focus on long-term performance.Therefore, even though the simulation lasts for around 1 month only, you should always keep the long-term perspective in mind.