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Pages:
2 pages/≈550 words
Sources:
2 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 10.53
Topic:

Portfolio Construction

Essay Instructions:

Portfolio Construction
You will be developing a simple portfolio that will be used for analysis over the following five weeks. This will also be used in your in-depth analysis of the entire portfolio for the Week Six Final Paper. You are given $10,000 to allocate to a portfolio. You must allocate 100% of your portfolio to the following securities: 
One hundred shares of a publicly traded company; 
One corporate bond; 
One mutual fund that reflects your investment style; 
One hundred puts or calls of one option of your choosing (just make sure it is at least 6 months out); 
With any leftover cash, find a 6-month certificate of deposit (CD) and “invest” the funds into it. 
Develop a table in Excel that can be used to track the value of these securities. Describe your objective(s) for this portfolio and why you chose the securities you did for your portfolio. Your paper must be a two to three double spaced pages in length (excluding the title page and references page) and be formatted according to APA style as outlined in the Ashford Writing Center. Your paper must include at least two scholarly sources, in addition to the text.
It needs specific detail. Here is a breakdown of the issues.
This is very generalized information about allocating 100% of resources in different investment markets.
Allocation can be as below:
5%-Money Market.
25%-Domestic Fixed Income.
20%-International Fixed Income.
10%-Large Cap Growth.
15%-Large Cap Value.
10%-Small/Mid Cap.
15%-International Equity.
Diversification is important because it minimizes the risk of investment. Allocating $3000,$3000 and $4000 to One hundred Shares of a company, one corporate bond and one mutual fund respectively, can be a way to construct this portfolio.
This is exactly what I need. ($10,000 is divided over multiple investments)
One hundred shares of a publicly traded company; -- I need to choose a specific company that is publicly traded that I can purchase 100 shares in. I need company name that I've chosen, current stock price, and beta of this specific publicly traded company.
One corporate bond-- I need to purchase 1 corporate bond from a specific source/company and state who that company is and how much the bond costs.
One mutual fund that reflects your investment style-- I need to invest in 1 mutual fund and tell what mutual fund I've chosen to invest in and also how much I can invest remembering that I only have $10,000 dollars to split between all these investments. 
One hundred puts or calls of one option of your choosing (just make sure it is at least 6 months out); I need to invest into 100 puts or calls of whatever company I choose but it must be at least 6 months out and I must tell how much I invested and where it was invested specifically remembering that all these investments must never exceed $10,000 combined 
With any leftover cash, find a 6-month certificate of deposit (CD) and “invest” the funds into it -- With any cash that I have remaining from the original $10,000 I must invest it into a 6-month certificate of deposit. and tell how much was remaining to invest in a certificate of deposit and where I chose to invest specifically.

Essay Sample Content Preview:

Portfolio Construction
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Subject:
Date of Submission:
Portfolio Construction
Donaldson et al, (2013) reveal that a sound investment portfolio is guided by a set of objectives that define the goals of the investment portfolio. Therefore, it is reasonable to set objectives before choosing appropriate vehicles for investing $10,000 dollars in order to generate income. It is notable that the objective for the upcoming investment portfolio was to generate income by balancing the safety and returns of a $ 10,000 investment using appropriate investment vehicles. It is the main reason why the portfolio comprises of shares, corporate bonds, mutual funds, options, and a certificate of deposit. Simply put, this paper constructs a financial portfolio by balancing the safety and returns of a $10,000 investment.
To begin with, the investor should purchase one hundred shares from Mattle international cooperation. This owes to the fact that a technical analysis of the organization projects an increase in the share price of the organization. Further, the organization has a beta coefficient of 1.17 implying the share prices can move either up or down depending on the market conditions. As evidence Donaldson et al., (2013) argue that an investment with a beta coefficient that is greater than shifts with the market environment. Further, the latest stock price for the investment was $ 22.61 implying the investor should use $2261 to purchase 100 shares.
In order to improve the safety of the portfolio it is wise to diversify the portfolio by investing in corporate bonds from Invesco PowerShares. It is notable that the bonds cost $14.9 implying the investor should spare $ 1490 to purchase 100 bonds. It is also notable that the top-down investment style encourages investing in mutual funds that are expected to perform well in the market. Consequently, the portfolio includes investing $ 99 in mutual funds from ProFunds UltraShort Latin America Inv because a technical analysis from the organization reveals that the mutual fund is likely to perform adequately.
The portfolio should also invest in options in order to increase returns from the portfolio while still controlling the risk. This ow...
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