Stock Market Project

1448 Words Nov 27th, 2010 6 Pages
I. Investment Objective Analysis We worked together on their finance stock market project. We felt that our risk tolerance was different then it normally would be sense we had 500,000 to invest in the stock market compared to our own money. Due to the fact that this was fake money we found ourselves to be conservative as well as risky depending on the situation. We have been given three months to invest money in the stock market as well as with different types of investments such as shorting, limiting, etc and to come out with a positive return. Our strategy was to be in the top tier percentage in the class. We wanted to find stocks that would be unique and not as commonly owned compared to other students in the class. We focused …show more content…
However, after we bought the stock we found out it was not suppose to start being developed/released until next year, the stock plummeted.

III. Evaluation of Portfolio Performance

Our performance over the course of the Stock Market Project compared to the S&P was very different. While over the course of 12 weeks we slowly grew, while the S&P market drastically went up and down. Towards the begging of the 12 weeks our rate of return was lower, but as the weeks went on we slowly started passing the market return. Our portfolio was growing at a constant rate, but in order to fit the requirements of the project we started focusing on other types of transactions as well as making earlier transactions to help us obtain a better portfolio return to improve our class ranking. And by doing this we were growing at an impressive rate, and once we started changing our strategy to fit project requirements we actually did the opposite of what we wanted.

The types of securities we focused on were ETF’s and stocks as we wanted to be more risky than passive on spending our money as we wanted to grow at a quick rate, and not be passive by buying bonds which would grow at a slower rate. We invested in well known companies and we made sure we were diversified by investing in all different sectors of the market. We also invested in companies we like or have known about from a day to day basis, as well as investing in companies we felt had huge immediate upside after

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