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FI567 - Class Project

FI567 – Class Project

Assume that you have $500,000 to invest in equities and want to establish a new portfolio that includes ten (10) stocks to be selected from the Dow Jones Industrial Average of 30 companies. It is also desired to start with nearly equal dollar values of each issue. Use current market prices to compute the number of shares required.

You are bullish on the markets in the long-term; however, you have read analyst predictions that over the next 18 months the market will likely stay flat with some downside potential. Despite these predictions, you want to make some money in the short-term, and at the same time avoid any downside spikes in the markets. A hedging strategy using options and/or futures seems appropriate. Please develop a plan to accomplish your goal and give a detailed explanation, with numerical computations, of the upside opportunities and the downside risks for each chosen position.

In addition to your investment in equities, you also have $1 million dollars to invest conservatively in U.S. Treasury issues and money market securities. Select four T-bonds and/or T-notes ranging in maturity from two years to five years and purchase equal dollar amounts with a total of approximately $500,000. Invest the remaining $500,000 in the money market. You need not select individual money market issues; just assume that the money market investments are secure and return the risk free rate. Please discuss the how the inclusion of the fixed income securities affects the risk in your total portfolio.

To begin the project you need to select 10 stocks and fixed income issues. When buying large quantities of stocks, it is most usual and convenient to issue orders in round lots (rounded to 100 shares). You should do this for your analysis. When you sum the value of the rounded lots, the result will almost certainly not be exactly $500,000. Ignore that difference and use the sum of the rounded lots as your equity investment. The same holds true for the fixed income selections. A spreadsheet is provided in Doc Sharing to help you do the required computations.

Taidot: kirjanpito, tietojenkäsittely, Rahoitus, Talousmarkkinat

Näytä lisää: treasury accounting, spreadsheet accounting, short term goal, new five dollars, income accounting, free accounting spreadsheet, free accounting notes, five dollar, dow jones, bonds accounting, accounting plan, accounting help free, accounting investments, fixed prices, market prices, accounting free, accounting companies, securities, market risk, investment plan, fixed income, accounting spreadsheet, stocks data, hedging strategy, project goal

About the Employer:
( 1 review ) Union, United States

Projektin tunnus: #1688018

Myönnetty käyttäjälle:

malimerchant

Greetings!! Stocks Portfolio Analyst here. Have a look at your inbox for details, SAMPLE and COST PLAN. Thanks

83 $ AUD 2 päivässä
(43 arvostelua)
4.4

9 freelanceria on tarjonnut keskimäärin 205 $ tähän työhön

KarrarRaza

Financial Analyst and modeler at your service. Please refer to inbox for details.

180 $ AUD 3 päivässä
(17 arvostelua)
4.5
Danielharman

I am highly interested in this project. Please refer to personal message for more details. Thanks

400 $ AUD 10 päivässä
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3.3
pzfreelancer

In for the bid

250 $ AUD 10 päivässä
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3.2
zahid40

professional accountant

100 $ AUD 3 päivässä
(0 arvostelua)
0.0
Bilalmemon

Greetings, Stock Portfolio Analyst here For SAMPLE and COST PLANS check your inbox ........ Thanks

210 $ AUD 1 päivässä
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asifvirani

Greetings!! Stock Portfolio Analyst here. Have a look at your inbox for details and COST PLAN. Thanks

220 $ AUD 1 päivässä
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conatus

Hi, Please look at the PM.

200 $ AUD 7 päivässä
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easybusy

Hello..i am already doing this kind of stuff for Indian markets and can do this for you also.

200 $ AUD 3 päivässä
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