Fin485 Derivatives Project Paper

Asset Allocation: Your allocation is approximately 86% stocks, 10% bonds, 3% cash & 1% other from the portion I analyzed. Of the stocks 71% are US & 15% foreign. As far as cap weightings, your portfolio is weighted more towards small cap stocks versus large caps by approximately 10% when compared to total US Stock market averages.

As of November 17, 2017, we had a negative return of 7.46%, whereas the benchmark index generated a return of 3.48%, meaning that we underperformed the benchmark by 10.94%. The decrease in market value of common stock holdings accounted for approximately 3.46% of the total loss, and losses from futures contracts accounted for approximately 4%. The standard deviation of our portfolio was 3.41%. Our portfolio had a shape ratio of -2.35%, and the information ratio was computed to be -9.6%.

Sales (in millions) As reported (nominal) Adjusted (real) 2007 $178,199 $178,199 2006 $171,179 $176,019 % Change 4.10 1.24

A. With the purpose of diversifying his portfolio, Javier should focus his investing toward other companies and sectors outside of Devon Energy Corp. Nearly 21% of his entire portfolio is invested in one company. The purpose of diversification is to help secure a portfolio from risk and loss. Having such a large chunk of his portfolio tied up in one company puts a large percentage of his portfolio in the hands of one company. If something were to happen and the shares dropped drastically Javier would experience a huge loss. Javier should stick with the idea of owning dividend stocks but should transfer some of his investments into other companies in other sectors. This will create some security and protect him from

The 7 stocks that I chose were, American Eagle, General Electric, Tanger Outlet, Procter & Gamble, Nestle, Microsoft Corporation, and Sprint Corporation. Some of the stocks I chose were for the some reasons and others were for different reasons. I chose American Eagle because I buy clothes from there and their stock seemed to be doing alright. The reason I chose General Electric because it is a technology company and technology is taking the world by storm recently. I chose Tanger Outlet because they just recently built a new one near where I live. The reason I chose Procter & Gamble because Tanner was doing it and it seemed like a good choice. I chose Nestle because I like their chocolate milk. I chose Microsoft Corporation because

Corporate finance is important because it enables managers to have an understanding of what funds would be necessary for upcoming projects and projects of their company as well as allowing them to plan ahead.

I originally purchased three different stocks to kick off my portfolio. First, I purchased Novavax Pharmaceuticals. It is a clinical

At the beginning of the project, I did some research and decided upon several different companies to diversify my stock. Initially, I purchased shares with nine different companies. I purchased 18 shares of Google at $1,090.83 each. I chose this stock because Google is a popular website, and it encompasses other companies such as YouTube. I purchased 65 shares of Chipotle at 302.81 each, because it was performing the best in the category of food at the start of the project. I purchased 279 shares of Michael Kors at $63.50 each, because it is a popular clothing and accessory brand. I purchased 187 shares of Disney at 106.42, because not only is Disney popular for its movies and parks, but also it sells merchandise. I bought 644 shares of H&R Block at $27.95 each, because it is tax season and I assumed their value would increase due to more use. I bought 2 shares of Dollar Tree at $105.33 each. I bought 10

The portfolio produced a return of 1.92% for one month, ~23% annualized (no compounding). Utilizing all of of our leverage could lead to returns more than twice that annually, 50%+. However, past performance is not always an indication of future results and, of course, that estimate may be overly-optimistic.

I selected THOR Industries, Inc. (THO), because quality recreational vehicles are something that I feel individuals still find important. I also wanted to ensure that my initial portfolio was diverse and had strong firms when initially starting out. For this purpose, I invested in 500 shared of THO stock to begin my initial portfolio. I decided to go with Microsoft (MSFT), because I felt that having a large technology organization would be beneficial to my portfolio. It is also one of the most used technology firms by both individuals and entities. For this purpose, I invested in 500 shares of MSFT stock to begin my initial portfolio.

4) My portfolio is losing more money when comparing to DJ Industrial Avg.,S&P 500 and the NASDAQ. My stocks in the NASDAQ is still losing money just like the other stocks in my portfolio.

In the Capital Asset Pricing Model, I got a beta of 0.3194 from TSX and the Saputo inc. returns from Jan.2010 to Dec. 2013, and a risk free rate of 0.86% from Bank of Canada. With a Market Risk premium of 6.90%, the Expected rate of returns was

This stock-track portfolio really kept me interested in class and I had a lot of fun doing it. Throughout the semester I made 40 different trades. The day I received my cash I bought 15 different stocks. I purchased 500 shares of each stock. Coca-Cola was my first. I didn't know much about the market, so I wanted strong, low-risk stocks. Next I bought Tommy Hilfiger Corp., because I really like their clothes and I felt that they were going to sell a lot more with the new line of kids clothing they were putting out. MCI communications was my next choice. My mother's cellular phone is hooked up with them and I figured I might as well support the company. Inter-Tel was next. I thought I was buying Intel, but

For the international equity, I spent 13.99% of my portfolio value about $156,871 on international equities. I bought 10,000 shares of Jinpan International Limited (JST) at $5.25, the last stock price is $5.85. I bought 100 shares of Sina Corporation (SINA) at $43.69, the last stock price is $48.11. I also bought 500 shares of Baidu Inc. (BIDU) at $175.7 as my new stock, the last stock price is $187.12, it brings me $5,710 profits. For Some other stocks I didn 't invest a lot, I am still wait and see these stock’s changes. Once these stock decreased, I am ready to cover the positions by using my 36.25% cash.

Though you have several strengths related to your portfolio, our team did find a few areas that could be improved. Our primary issue with your current portfolio is your high equity allocation; this means that a majority of your portfolio is held in stocks. When a majority of your portfolio is held in stocks, you are not diversifying throughout all asset options available to you and are opening yourself up to a higher level of risk. By diversifying throughout different types of assets, cash, bonds, stocks, etc., you minimize your risk and are more likely to reach your goals.