You have to write two reports regarding your trading activities during the term. The first report is your investment proposal, in which you assume that you have $1,000,000 to invest. You may assume that you are either managing the portfolio for yourself or on behalf of a client (aunt, grandparents, parent, etc.).

Instructions:

You must design an investment proposal.

The proposal should have:

1. Your investment strategy. You have a very short-time horizon to invest. However, for this proposal, you may assume that you do not have this constraint. For example, you can say, my time horizon to start withdrawing funds is ten years. You may use the Investor Profile questionnaire that you completed in Unit 1 AS3 to help you to select the strategy.

2. Asset allocation. Asset allocation must be consistent with your investment strategy.

3. Security selection. You may choose any securities you want. However, mutual funds and exchange-traded funds (ETFs) provide a relatively easy way to reach the asset allocation you have chosen. As part of this assignment, you must include at least three common equity stocks in your portfolio. Therefore, make sure you include them as part of the securities of your portfolio. You have to justify why you are purchasing (or short selling) these stocks (see requirement # 4). Note: you will need to check the prices of the securities you have chosen at the end of the term; therefore, create a watchlist for these securities (for example using Finance Yahoo, Finance Google or any other free finance website that offer this service).

4. Stocks Justification. You have to substantiate the selection of three (3) of your picks, providing a compelling story of why you are buying or short selling the stocks. You have to back up the justification by showing that you have done some research on the stock and citing your sources. You cannot just say my guts tell me I should buy this company, or I am buying this company because someone recommended me to buy it.

5. Presentation of the portfolio. This is a table showing portfolio weights. The weights are the proportion (or percentages) of each of your securities relative to the total investment you are making. The table must also show the portion of your asset allocation relative to the total investment. An example of a portfolio is attached ("Example of Portfolio").

Table 1. Aggressive Allocation Portfolio (As of August 10, 2019) Type of Price Paid Market Value (USD) Name Quantity Weight Ticker Security Symbol Large-Cap Equity ETF SPY Stock AMZN Stock GOOG Stock AAPL 1,612 6 SPDR S&P 500 ETF Amazon.com, Inc. Alphabet Inc. Apple Inc. Total Large Cap Equity 291.62 1807.58 1,188.01 200.99 8 470,091 10,845 9,504 10,050 500,491 47.0% 1.1% 1.0% 1.0% 50.1% 50 Small-Cap Equity ETF IWM 150.62 1,328 iShares Russell 2000 ETF Total Small-Cap Equity 200,023 200,023 20.0% 20.0% International Equity Mutual VEMRX Fund 85.33 2,923 249,420 24.9% Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares Total International Equity 249,420 24.9% Cash 1.13 Currency Currency EUR USD Euros US Dollars Total Cash 22,124 25,000 1 25,000 25,000 50,000 999,934 2.5% 2.5% 5.0% Total Investment 100.0% The Table above shows an example of portfolio showing an aggressive allocation. As per the aggressive asset allocation proposed in the risk-tolerance questionnaire (see page 4 of the questionnaire), the weights of each asset should be:1 . . Large-Cap Equity 50% Small-Cap Equity 20% International Equity 25% Cash 5% . There is not "fixed income securities in this aggressive allocation. Table 1. Aggressive Allocation Portfolio (As of August 10, 2019) Type of Price Paid Market Value (USD) Name Quantity Weight Ticker Security Symbol Large-Cap Equity ETF SPY Stock AMZN Stock GOOG Stock AAPL 1,612 6 SPDR S&P 500 ETF Amazon.com, Inc. Alphabet Inc. Apple Inc. Total Large Cap Equity 291.62 1807.58 1,188.01 200.99 8 470,091 10,845 9,504 10,050 500,491 47.0% 1.1% 1.0% 1.0% 50.1% 50 Small-Cap Equity ETF IWM 150.62 1,328 iShares Russell 2000 ETF Total Small-Cap Equity 200,023 200,023 20.0% 20.0% International Equity Mutual VEMRX Fund 85.33 2,923 249,420 24.9% Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares Total International Equity 249,420 24.9% Cash 1.13 Currency Currency EUR USD Euros US Dollars Total Cash 22,124 25,000 1 25,000 25,000 50,000 999,934 2.5% 2.5% 5.0% Total Investment 100.0% The Table above shows an example of portfolio showing an aggressive allocation. As per the aggressive asset allocation proposed in the risk-tolerance questionnaire (see page 4 of the questionnaire), the weights of each asset should be:1 . . Large-Cap Equity 50% Small-Cap Equity 20% International Equity 25% Cash 5% . There is not "fixed income securities in this aggressive allocation