Case Study (FIN-300): Financial Securities and Markets

Category : Archieve

Case Study (FIN-300): Financial Securities and Markets

Educational purposes only…

Purpose

  • Form a financial securities portfolio with diverse securities
  • Review and apply the theory of diversification
  • Conduct a detailed research about financial securities as well as financial markets.
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    Rules

  • Trading Game is used for the portfolio formations.
  • You need to use one username for the entire case study (i.e. same username for all three sections/portfolios).
  • Your username for this case study must be unique to this case study (i.e. you cannot use a username you already had for other case studies).
  • 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.
  • If you submit this case study before the deadline AND you receive a grade of C or better then you can resubmit this case study for a second time (with a new username). There is no third resubmission.
  • You need to have a new username for the second submission.
  • 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 can use Stata (completely voluntary) to trade or check your work.
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    Directions: Stocks

  • (5 points) Maximum allowed funds (based on cost) for the stocks is $250,000.
  • (5 points) Minimum allowed funds (based on cost) for the stocks is $245,000.
  • (7.5 points) You need to have at least 20 different stocks in your portfolio.
  • (7.5 points) You need to have at least five different industries.
  • (7.5 points) You need to have at least three different US markets.
  • (7.5 points) You need to have at least five different currencies (other than US dollars).
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    Directions: Mutual Funds and ETFs

  • (5 points) Maximum allowed funds (based on cost) for the mutual funds and ETFs is $250,000.
  • (5 points) Minimum allowed funds (based on cost) for the mutual funds and ETFs is $245,000.
  • (5 points) You need to have at least 10 different ETFs in your portfolio.
  • (5 points) You need to have at least 10 different ETF categories in your portfolio.
  • (10 points) You need to have at least 10 different mutual funds in your portfolio.
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    Directions: Options

  • (15 points) For 5 of the stocks in your portfolio, you need to have 1 Call Option for each.
  • (15 points) For 5 of the stocks in your portfolio, you need to have 1 Put Option for each.
  • Grading:

    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.