FIN 344 Portfolio Fact Sheet/Report
Using the MSU StockTrak contest, create a diversified portfolio of stocks and bonds with at least one firm must be your assigned firm. Prepare a fact sheet/report for your portfolio which includes the analysis listed below. Use charts, tables, graphs, and text to summarize and highlight your analysis.
Your analysis must include the following:
(1) Industry/Sector Analysis:
a. Select stocks from at least 10 different sectors (but, less than 20)
b. Provide details on the outlook of each sector
c. Industry Summary must include asset name, symbol, and percentage composition
(2) Stock Index Value:
a. Create a price-weighted index for the stocks selected
b. Create a value-weighted index for the stocks selected
c. Stock Index Summary must include the stock price, market cap, # of shares for each stock used in the index
(3) Portfolio Diversification Strategy:
a. Discuss Asset Selection Approach
i. Discuss fundamental Analysis used
ii. Discuss technical Analysis used
b. Discuss Asset Allocation Approach
i. Investment Goals
ii. Risk Level/ Tolerance
c. Summarize percentage of each asset class used
(4) Return and Risk Stock Profile:
a. Compute portfolio beta and discuss its meaning
b. Compute portfolio Sharpe ratio and discuss its meaning
(5) Portfolio Management:
a. Discuss market orders used (must use some type of buy/sell market order)
b. Discuss rationale for stock trades (buy/sell trades)
c. Value-added (comparison of portfolio start value to end value); discuss how value-added was achieved.
Portfolio Fact Sheet Format and Content: The factsheet/report should include the following information. Use tables, charts, and graphs to highlight information. The format and attractiveness of report is important. The following sections and headings are required.
a. Objective, Investment Strategy, and Management Approach: Summarize your management approach, investment strategy, and objective.
b. Industry Summary: Provide an overview of the industry outlook; include the stock symbol and its percentage composition in the portfolio
c. Stock Index Summary: Compare and contrast indices created. For price-weighted and value-weighted indices include stock price, market cap, and # of shares for each stock in the portfolio.
d. Portfolio Diversification: Highlight your approach to creating a diversified portfolio. Discuss why your portfolio matches your investment strategy and objective.
e. Risk and Return Profile: Discuss risk and return profile of portfolio as compared to the overall market; list portfolio beta and Sharpe Ratio