For your course project, you’re to construct a sound investment portfolio. Please follow the steps below to construct an Optimum Portfolio using Mean-Variance Optimization Method:
- Identify your Investment Goals (should be SMART) for your investment portfolio.
- Identify your Risk Tolerance Index.
- Ascribe an asset allocation.
- Select assets.
- Calculate Portfolio’s Return, Beta, Standard Deviation, Sharpe, and Alpha.
- Project the portfolio’s return within 68% probability for the next year.
Deadline
Submit your projects on Sunday 4/16/2019 on Canvas
Style
Your portfolio project should be in APA format, 15-20 pages (excluding appendixes), and single space with at least ten references.
- Cover
- Table of contents
- Table of charts, figures, and tables
- Introduction – summary of your project
- Investment Goals, Risk Tolerance Index, Asset Allocation, Asset Selection.
Summary discussion for each. - Portfolio’s performance measurements – Summary disucssions on each measures.
- Performance projection and comparison with major indices (S&P500, etc.)
- APA Citations (References and in-text)
- Appendix (related parts for the financial statements for the companies)
Sources
Your textbooks – Investments, Zvi Bodie, 11e. & New Paradigm Investor, Gandevani
My proprietary Investment Portfolio Optimization in your course
Yahoo Finance
Investor Business Daily newspaper (http://www.investors.com/)
Wall Street Journal (http://online.wsj.com/public/us)