Assignment
1. Come up with an investment strategy. For example, I believe that large ownership by insiders leads to superior returns, especially with undervalued high growth stocks. Provide a brief rationale for the strategy in your report.
Some ideas for investment strategy are provided in the booklet titled What Has Worked In Investing by Tweedy, Brown Company LLC posted on D2L.Yahoo Finance stock screener page cited below provides some stock screens that may also provide some ideas for investment strategies.
2. Identify 5 stocks consistent with your strategy. Use Yahoo! Finance Stock Screener for this purpose. It's available at
https://finance.yahoo.com/screener/new
3. Create a stock selection and weighting scheme (in %) consistent with your strategy. Track the performance of the stocks you selected over time. (At least 10 consecutive trading days' performance starting from 11/4/2016)
4. Submit a short report (2 pages max; excluding exhibits) describing your strategy. Your report should be submitted to dropbox on D2L. Late submission and email submission will NOT be accepted. The report should consist of the following:
- Your investment strategy and a brief rationale for your strategy.
- Your stock selection scheme, with an explanation of how the various elements of your scheme are consistent with your strategy.
- A table listing the stocks (ticker), percent of money to be invested in them and their daily performance (return) over time.