Team Project # 3: Investment Report
(Due Dec. 5 in class)
This is a team project. But everyone MUST contribute. Remember that at the end of the semester we will do a peer evaluation and your team project grades will be adjusted accordingly.
The primary objective of this project is to evaluate your performance as investment managers. You should evaluate your performance relative to the market benchmark (the S&P 500 index).
This is a writing assignment and will be graded as such. Do not simply list the answers to the questions. Write and organize the answers as if you were writing a report for your boss. Finally, your grade depends on you correctly evaluating your performance, not on whether you had good performance.
Use MS Word to prepare your report. Please include your team information. The report should be about 3 pages typed and double-spaced, using one-inch margins and a font size of between 10 and 12. Additional graphs and tables may be included and are not counted in the 3 pages. (DO NOT include graphs or tables that you do not discuss in the report.) Also, be sure that your write-up includes an introduction and conclusion as described below.
Your report should be organized as follows.
The introduction should clearly explain the basic structure of the trading game and the purpose of this report. For example, someone outside our class should be able read your report and understand what the trading game was all about and the purpose of the report.
B. Overall Performance
You should begin by discussing the overall return and risk characteristics of your portfolio. Most importantly, what are the total holding period return and total risk of your portfolio and how do they compare to that of the market benchmark? How does your performance compare to other groups in the class? What was your investment strategy and how well did it work? [If you have room, you could also discuss the risk...