Economics Indicators :: essays papers

Economics IndicatorsInvestments The Stock-Trak investment simulation program began on August 30th, which attach the first day that trading was every(prenominal)owed. A total available touchstone of $300,000 was used for investing. The objective of this assignment is to maximize the value of the portfolio through November 19th, which was the buy the farm day of the trading period. I began the process of choosing specific investments for my portfolio by victorious an asset allocation questionnaire (appendix I). Since the objective was to maximize portfolio value, I made real for each question asked that I chose the answer with the most risk. My reasoning existence that having my gold in risky investments will on average poke out to a greater return than investments with lower risk. The objective did not denotation risk tolerance, and I wanted a portfolio composition with a swell chance of earning exceptional returns. After completing the survey, I ended up with an aggre ssive asset allocation plan (appendix II). This stated that 85% of my money should be invested in stocks, while the remaining 15% of my money should be invested in bonds. I had several basic strategies that I felt would take place to my portfolio having high returns. First I felt that it was important to invest primal on in the trading period so that I would not miss any positive returns the market might yield (I was richly invested by September 10th). Secondly I wanted to buy all my investments and hold them because I believe that this dodge will best maximize returns. Timing the market I felt was lucky and too complicated. ultimately I wanted to make sure that I bought at least 25 separate assets, so that I could be properly diversified. I used the Wall Street Journal to pick my individual stocks. My person-to-person strategy was to pick stocks that were at or near their 52 hebdomad low in determine. I felt that corporations, especially those that were well known, at or near their 52 week low in price would gain momentum. Furthermore I made sure that I was choosing companies that were in diverse industries. I also included some international companies as well as some relatively smaller firms to add to my portfolio. My strategy on buying bonds was to buy four bonds that had diametrical maturity dates, and came from different issuers such as corporate and government bonds.