Order instructions

The student then states his (her) return objectives in terms of an absolute or relative percentage return, or in terms of a general goal, such as capital appreciation, capital preservation, current income or total return. The student also specifies the types of risks he (she) is willing to take. In the second step of the exercise the student studies the financial and economic conditions then determines his (her) investment strategy.  In the third step of the portfolio management process the student constructs his (her) portfolios on (Yahoo.com, cnnmoney.com, msnmoney.com or any other similar website). The student decides on what asset classes to consider for investment, the policy weights to assign to each asset class, and the specific securities to purchase for the portfolio.  The students then perform portfolio analysis to ensure that the asset allocation process is consistent with the objectives stated in his (her) policy statements.  The fourth step in the portfolio management process is the monitoring and updating of the investment needs and market conditions. A major component of the monitoring process is evaluation of the portfolio performance and comparing the results to the expectations listed in the policy statement.
After completing the Internet project students are required to submit through e-mail:

1.    Five to ten pages report in which they include
a.    Their policy statement,
b.    Steps they followed in the process of making their investment decisions,
c.    Their comments on the performance of their portfolio during the period.
d.    Discussion of how to use the different derivative securities in developing hedging strategies to hedge portfolio risk. At least one strategy should be implemented in this exercise
2.    An electronic copy of their final portfolio as it appears on the website.