You are required to construct and manage a portfolio of common stocks and other securities by using$60,000 fake money. This assignment helps you practice the theories and techniques covered in this seminar. Through this assignment you will also select and test the effectivenessof one of the trading rules in achieving abnormal profit in the market. These trading rules are based on some market anomaliesthat have been discovered by some academics and market professionals. Finally, this project requires that you woulddevelop the skillsthat an investor needs forusingthe web based investment tools andinformation sources.

For the sake of simplicity we assume the following:

• There is no commission in buying and selling securities.
• The dividends paid by a company over the next 10 weeks are invested in additional shares of the same company at a price prevailed on the dividend payout date.
• Aportfolio that you have constructed (copy and paste the portfolio from your Excel worksheet) based on one of the investment strategies or trading rules that you find in chapter 11 of the Malkiel book.
• The names of the companies that you have selected, the industry to which each company belongs, and the primary line of business of each company. You should also providethe names, applicability, and effectiveness of library financial information sources as well as the screens and internet screening websites such as Yahoo or Morningstar that you have used for selecting the securities.
• The objectives of your portfolio, the strategy you have formulated to achieve such objectives and the logic of the screens you have used to come up with a manageable number of securities for further evaluation and inclusion into the portfolio. Please also make sure that your portfolio is adequately diversified.