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:
- 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.
- 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.
- Explain why you chose 2 of your securities.
- Discuss your alpha, beta and Sharpe measures for your portfolio and what they mean about how your portfolio performed.