Stock Track Simulation Sample
PART1-Investment Policy Statement
Purpose of Policy Statement
The purpose of the Policy Statement is to create an agreement between XXXX, YYY, and ZZZ to collectively manage a mock $1,000,000 portfolio during the 2011 fall semester. It will define the investment objectives, strategies, and risks associated with this portfolio.
Investment Objectives
The objective of our team is to seek capital appreciation of portfolio in three months. Moreover, given the little risk tolerance of the team, our nominal return should exceeds the rate of inflation over some period of the time through capital gains, and increase the purchase power of our group. The chosen benchmark to beat is the S&P index.
Investment Strategies
Our investment strategies are somewhere in between to maximize expected returns and to minimize risks. We use Market timing as one of our strategies to maximum our returns. The market timing strategy is to making buy or sell decisions of financial assets by attempting to predict future market price movements. The prediction is based on an outlook of market or economic conditions resulting from technical or fundamental analysis.
Also we another strategy is to analysis base on performance of a particular financial asset. The start-up fund was divided into six parts: 10% cash, 5% mutual funds, 55% stocks, 30% bonds, and may vary by+/-5%.
Given the short time frame, liquidity is a concern and as such long-term speculative investments such as real estate, art and antiques, and collectibles will be avoided. Only those investments than can be traded on a short-term notice will be used. Taxes and trading costs will not be considered since this is a simulation.
Investment Risk
On the grounds of strong risk aversion expressed within the team, risk bearing in excess of general market risk is not tolerated. Moreover, the team strives to mitigate the inevitable share of market risk as much as possible. As to the
Purpose of Policy Statement
The purpose of the Policy Statement is to create an agreement between XXXX, YYY, and ZZZ to collectively manage a mock $1,000,000 portfolio during the 2011 fall semester. It will define the investment objectives, strategies, and risks associated with this portfolio.
Investment Objectives
The objective of our team is to seek capital appreciation of portfolio in three months. Moreover, given the little risk tolerance of the team, our nominal return should exceeds the rate of inflation over some period of the time through capital gains, and increase the purchase power of our group. The chosen benchmark to beat is the S&P index.
Investment Strategies
Our investment strategies are somewhere in between to maximize expected returns and to minimize risks. We use Market timing as one of our strategies to maximum our returns. The market timing strategy is to making buy or sell decisions of financial assets by attempting to predict future market price movements. The prediction is based on an outlook of market or economic conditions resulting from technical or fundamental analysis.
Also we another strategy is to analysis base on performance of a particular financial asset. The start-up fund was divided into six parts: 10% cash, 5% mutual funds, 55% stocks, 30% bonds, and may vary by+/-5%.
Given the short time frame, liquidity is a concern and as such long-term speculative investments such as real estate, art and antiques, and collectibles will be avoided. Only those investments than can be traded on a short-term notice will be used. Taxes and trading costs will not be considered since this is a simulation.
Investment Risk
On the grounds of strong risk aversion expressed within the team, risk bearing in excess of general market risk is not tolerated. Moreover, the team strives to mitigate the inevitable share of market risk as much as possible. As to the
References: “The eurozone debt crisis just won 't quit”, retrospect from: http://finance.yahoo.com/news/eurozone-debt-crisis-just-wont-211300837.html “StanChart warns on China’s local-government debt”, retrospect from: http://www.marketwatch.com/story/stanchart-warns-on-chinas-local-government-debt-2011-09-20 Data, retrospect from www.yahoo.com/finance Data, retrospect from www.reuters.com/finance Data, retrospect from www.google.com/finance