You have just been offered the opportunity to become an investment manager for a major hedge fund. But, in order to get the job and the incredible salary, you need to prove yourself first. The fund would like you to demonstrate your investment acumen. Here is what you need to do.
You have $1,000,000 to invest. You will invest approximately $100,000 in each of eight stocks,
stock mutual funds, or equity ETFs, and approximately $50,000 in each of four bonds, bond mutual funds, or bond ETFs.
You need to make a spreadsheet showing the following for your investments:
1 – investment name and ticker symbol
2 – purchase price
3 – purchase quantity
– percent change in value of your portfolio from January 3, 2022 until May 2, 2022
5 – absolute change in value of your portfolio from January 3, 2022 until May 2, 2022.
6 – beta for your stock investments.
7- P/E ratio for your stock investments
8 – the ratings for your bond investments
9 – yield for bonds
10 – A comparison of how the S&P 500 index performed from January 3, 2022 until May 2,
11 – Any other data that you might deem relevant.
Your report should consist of a description of each investment and your reason for the purchase.
You should make separate pie charts for your stocks and your bonds, showing the fraction of the total for each investment, or the dollar amount, or both. You might want to make a graph for each investment showing its closing price on each date from January 3, 2022 until May 2, 2022.
This could be one graph with multiple lines to show the prices, or individual graphs. Another good idea would be a chart showing the daily change in the value of your portfolio (closing prices) over the time period. To receive full credit, you must include the graphs.
You may not invest in the following stocks:
Apple, Microsoft, Google, Facebook, Amazon, Gamestop, AMC, Zoom, Netflix, or Tesla.
All of the data is readily available in the Yahoo or Google finance pages, Fidelity, Schwab, or
Vanguard, among other sources.