This is a four-Part Project offering you the opportunity to demonstrate mastery of the knowledge and skills gained is this course. The total grade for the Project is 30% of the final grade for the course. Each of the four written submissions for this Project is due by 4:00PM eastern Standard Time on the due date. After that they are considered late. Late Project submissions will be marked down 10% each day the submission is late. Read all instructions before starting.
Project Part 1. Initial selection of stocks.
Assume you have $1,000,000 to invest. You will use this to form a hypothetical large cap ( each company with at least $10 billion in Market Capitalization) diversified stock portfolio by investing your funds in five stocks chosen from five different industries. No short sales, fractional shares, or margin trades are permitted for this Project. To determine how much you have invested in any particular stock, multiply the stock price times the number of shares purchased. You must use at least $900,000. Any funds left over represent cash in your portfolio that earn no return. Dividends and other cash distributions will be added to cash and not reinvested.
Trades are not permitted except in extraordinary situations with the specific approval of your instructor’s prior approval. Trading will only be considered between Friday of week 1 and Thursday of week 13, January 22 to April 9. Should a trade be allowed, the instructor must be notified via email of the specifics of the trade within 24 hours.
Deliverables:
1. A spreadsheet that includes the number of shares you purchased for each stock and the closing prices as of Friday of week 1, January 22, of your stocks. Report the last dividend paid date and amount as well as the next dividend pay date. Also, include your total investment and the amount held in cash. To get stock price information go to
or
and click on “Finance”. Enter the ticker symbol of your stock as well as any other needed information to track the stock such as exchange the stock is traded on and click on historical prices. Use the column that contains closing prices to track the stock for the semester.
2. Conduct and analysis of the stocks explaining why you chose these particular stocks based on your analytical technique. The analysis, (three to six pages plus spreadsheets) should include the following:
a. Give a brief history of the companies and their products. Briefly discuss where the company is heading (new products or ventures). Identify each company’s competitors and identify each company’s ranking among it’s competitors.
b. Find the reported beta and and the adjusted beta of each company calculating the other if only one is reported. Record your source and describe how they calculated the betas including frequency of observations, as methods do vary. Explain what the beta tells you about each company.
c. What is the beta of your portfolio?
d. Ask yourself why you chose this particular stock, what attracted you to this stock, what connection do you have with the company? Record your answer in your analysis.
3. The due date for this Project Part is Thursday, January 28, 2021, (week 2) by 4:00PM Eastern Standard Time. Late Project submissions will be marked down 10% per day.
Rubric(s)
Weight
Criterion
Above Standards
Meets Standards
Approaching Standards
Below Standards
50%
Research
Incorporates many scholarly resources effectively that reflect depth and breadth of research.
Incorporates some scholarly resources effectively that reflect depth and breadth of research.
Incorporates very few scholarly resources that reflect depth of research.
Does not incorporate scholarly resources that reflect depth and breadth of research.
25%
Inquiry and Analysis
Demonstrates extensive exploration of issues/objects/works through the collection and analysis of evidence to make well-informed conclusions/judgments. Organizes and synthesizes evidence to reveal insightful patterns, differences, or similarities related to focus.
Demonstrates adequate exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence to reveal important patterns, differences, or similarities related to focus.
Demonstrates minimal exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence, but the organization is not effective in revealing important patterns, differences, or similarities.
Does not demonstrate even minimal exploration of issues/objects/works through the collection and analysis of evidence and unable to make informed conclusions/judgments. Lists evidence, but it is not organized and/or is unrelated to focus.
25%
Quantitative Literacy
Effectively works with numerical data and solves quantitative problems from a wide array of authentic contexts in everyday life.
Works with numerical data and solves quantitative problems from a wide array of authentic contexts with moderate effectiveness.
Works with numerical data and solves quantitative problems with minimal effectiveness.
Is not able to work with numerical data and solve quantitative problems.
