BUS 405 Focus of the final Project
BUS 405 Focus of the final
Project
Focus of the Final Project
Students will construct
a well-diversified portfolio using an initial investment stake of $50,000 (the
portfolio should use at least 95% of the initial investment, but they may not
use more than $50,000). Students may include stocks, common or preferred;
bonds, corporate or U.S. Treasury bonds; mutual funds, and futures contracts,
or options. Students will use the closing prices from the first day of the
class to determine the price of each issue. Only whole lots of any issues may
be acquired; that is, no less than 100 shares of common or preferred stock, no
less than five corporate bonds or $10,000 for U.S. Treasury Bonds, no fewer
than the minimum required investment for any mutual fund, and no fewer than
five contracts for any option or futures position. The settlement date will be
the first day of Week Three. Students do not have to use all of the above
mentioned securities, but they must use more than one class of security.
Transaction costs are ignored in the creation of the portfolio.
The Final Project is
to be written in accordance with APA guidelines as outlined in the Ashford
Writing Center.
1.
Explains their
investment strategy, including an assessment of their willingness to bear risk.
2.
Describes the
securities in the portfolio, including a description of the historical
information for each firm.
3.
Calculates a quarterly
and annualized return on the portfolio, and the expected return for the
portfolio (students may use the closing prices as of December 31st of last
year).
4.
Computes the beta of
the portfolio (MERGENT, in the Ashford Online Library, can be used to find the
historical betas of each security) using concepts learned within the course.
5.
Summarizes the risks
of their portfolio and determines any areas where they might consider
reinvesting portions of their portfolio to achieve either less risk or higher
expected return.
Writing the Final Project
The Final Project:
1.
Must be eight to ten
double-spaced pages in length (not including title and reference pages), and
formatted according to APA style as outlined in the Ashford Writing Center.
2.
Must include a title
page with the following:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
3.
Must begin with an
introductory paragraph that has a succinct thesis statement.
4.
Must address the topic
of the paper with critical thought.
5.
Must end with a
conclusion that reaffirms your thesis.
6.
Must use at least four
scholarly sources, including a minimum of two from the Ashford University
Library.
7.
Must document all
sources in APA style, as outlined in the Ashford Writing Center.
8.
Must include a
separate reference page, formatted according to APA style as outlined in the
Ashford Writing Center.
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