PORTFOLIO SIMULATION COMPETITION

The objective of this competition is to provide you with hands-on portfolio management experience, to help you feel the pulse of dynamic stock market, and to help you learn how to manage a portfolio. You will have the joys of realizing profits and (hopefully, without) the regret of incurring losses.

You will be endowed with $100,000 cash. You may buy, sell, or short any stocks of your choice. You can also do margin trading, place limit orders and stop loss orders and conduct partial share trading. Remember that this website does not allow bond trading.

And for the writing part .

Part One

Explain your strategy in the market simulation game. Provide examples of trades that reflect your execution of your strategy, be specific. Discuss any changes to your strategy as the game progressed, did you increase your risk taking, reduce your risk, etc. Analyze the effectiveness of your strategy, were you successful or not? If you were to do the simulation again, what, if anything, would you do differently?

Part Two

Assume you were given a gift of $100,000. You are not allowed to touch the money for 20 years. You are required to run the portfolio yourself. Explain how you would run the portfolio and why. Explain any changes you would make as time passed by. Make sure to include concepts we have covered in class (investment policy statements - objectives and constraints, individual risk tolerance, asset allocation, etc.).

Part Three

Reflection - Write a reflection about how your total University experience has influenced your understanding of Finance and its role in the world. How have non-finance classes taken helped shape your views and understanding of Finance? How has your time here shaped and prepared you for a vocation in Finance?

4-6 pages double space.