Case Study (FIN-300): Portfolio competition
Educational purposes only…
PLEASE NOTE: You need a new username for this case study.
Form a financial securities portfolio with the purpose of making profit.
Review and apply the risk and return theory
Review and apply the portfolio management and diversification theory
Trading Game is used for the portfolio formations.
Please note that the Trading Game uses Yahoo! Finance for all financial figures, financial statements, historical prices, beta, symbols, ticker codes, fund categories, ETF categories, options, futures, commodities, security names, countries and all other information pertaining to this case study.
You can only trade stocks (no ETFs, ADRs, Options etc.)
You can only have long positions (no short positions)
You cannot day trade. You cannot close positions. ONLY “buy to open” orders will be evaluated. All other orders will be disregarded.
If you make a mistake, you need to reset your entire portfolio. ONLY “buy to open” orders will be evaluated.
Once you trade a security, it is reserved. It cannot be traded by anybody else.
You need to let me know when you are done so that I can grade your work.
All work will be graded immediately after the deadline. Trading Game will not allow you to trade after the deadline.
You CANNOT use Stata to trade for this assignment. If a stock is not reserved, it will not be included in your portfolio. Stata trades are not reserved.
Maximum allowed funds (based on cost) for the stocks is $500,000. No partial credit is given if portfolio value is more than $500,000.
Minimum allowed funds (based on cost) for the stocks is $450,000. No partial credit is given if portfolio value is less than $450,000.
There needs to be at least 20 different stocks in your portfolio. No partial credit is given if portfolio contains less than 20 stocks.
This assignment is worth 10 extra credit points that can be added to any of your exams.
Top 3 trades will receive full 100 points.
Traders who have more than 5% return will receive full 100 points.
Traders who have more than 2.5% (and less than 5%) return will receive 75 points.
Traders who have more than 1% (and less than 2.5%) return will receive 50 points.
Traders who have completed all requirements but could not achieve any profits will receive 25 points.
Grading towards course grade
THIS ASSIGNMENT IS COMPLETELY VOLUNTARY.
THIS ASSIGNMENT IS NOT PART OF OUR REQUIRED COURSE CONTENT.
This assignment has a total of 100 points. 10% of these points can be added to any ONE of the exams.
For instance #1: Let’s assume you received 100 on this assignment. Then, you can add 10 points to any ONE of your exams.
For instance #2: Let’s assume you received 80 on this assignment. Then, you can add 8 points to any ONE of your exams.
For instance #3: Let’s assume you received 60 on this assignment. Then, you can add 6 points to any ONE of your exams.