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  1. Option 1: Completed Independently
  2.  
  3. You are an investment broker who has been asked to create a diverse investment portfolio for a new client. Before investing your client's $5,000 in a variety of stocks, bonds, and cash equivalents that will make up the portfolio, you must first get to know your client.
  4. Part I: Client Profile
  5. Create a fictional client for whom you will create an investment portfolio. You must provide the client's
  6. Name: Bill Billy
  7. Age: 24
  8. Occupation: Software Engineer
  9. family situation: Married with Children
  10. investment goals : Children's college tuition
  11. Part II: Diversified Portfolio
  12. Using the tabs below and the information contained within, choose five investments. The collection of investments may include stocks, bonds, and/or cash equivalents. You have $5,000 to invest. For any stocks you purchase, you will choose the number of shares.
  13.  
  14. For each stock you choose, send your instructor the
  15. type of stock/company:
  16. Common stock in a clothing company in business for 125 years (low risk)
  17. number of shares purchased (Note: You will make up this number.)
  18. 7 shares purchased
  19. price per share
  20. $44.35
  21. initial investment in each stock (Hint: Multiply the number of shares purchased by the price per share.)
  22. For any bonds you choose, send your instructor the
  23. type of bond
  24. interest rate
  25. bond value
  26. bond price
  27. For any cash equivalents you choose, send your instructor the
  28. type of account
  29. interest rate
  30. compounding frequency
  31. principle amount invested
  32. Reminder: You are investing a total of $5,000. So, be sure the total amount of your investments (stocks, bonds, and/or cash equivalents) equals $5,000.
  33. Describe, using complete sentences, the portfolio you have designed. Is it an aggressive, conservative, or moderately risky portfolio? Why?
  34.  
  35. Note: When explaining the risk level of the portfolio, evaluate each stock, bond, and cash equivalent you chose and describe why it is an aggressive, conservative, or moderately risky stock, bond, or cash equivalent. Then, evaluate and describe the risk level of the overall portfolio.
  36. Part III: Final Investment Value
  37. It is one year later and your client needs the status of their accounts. Select any stocks your client purchased to see how they performed over the last year. Select any bonds your client purchased to ensure the government or company did not default on their loan. Calculate the value of any cash equivalent accounts. Show your work.
  38. Note: You are not being evaluated on how well the portfolio performed. So no peeking before choosing the investments! You'll take the fun out of it.
  39. For each stock you choose, send your instructor
  40. type of stock/company
  41. number of shares purchased
  42. final price per share rounded to the nearest cent
  43. final investment value rounded to the nearest cent
  44. For any bonds you choose, send your instructor
  45. final investment value rounded to the nearest cent (Note: For all bonds that are stable, calculate the bond yield. If the bond is not stable, a final investment value will be given.)
  46. For any cash equivalents you choose, send your instructor
  47. final investment value rounded to the nearest cent
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