roject 2 Assignment Details:  Continue to invest your portfolio from project 1 using the following asset allocation guidelines:

  • Maximum 10% Cash (funds left uninvested). 
  • 10-50% Fixed Income
  • 20-110% Equities
  • 0-20% Alternative Investments

You can have negative cash by going on margin by just continuing to buy stock.  Stocktrak will automatically loan you money when you use your cash.

Submit a two page written report in the Blackboard box provided below.  Discuss the following:

  1. Show your asset allocation percentages for each of the 4 asset classes and show each security within each asset class and the percent of each for your total portfolio.
  2. Explain why you chose your asset allocation compared to the following standard allocation:  40% Fixed Income and 60% Equities.  You may believe certain asset classes will have higher or lower returns than normal.
  3. Explain why you chose 2  of your securities.
  4. Discuss your alpha, beta and Sharpe measures for your portfolio and what they mean about how your portfolio performed.

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