Portfolio Management Project Description

This authentic assessment project satisfies the Course Objectives:

· Use analysis methods in the valuation of actual equity securities
· Construct an appropriate portfolio selection and manage it making decisions given a set of investment goals and objectives.

The term project is organized as an individual case study exercise. You will select a portfolio to study. A research paper and class presentations are required of each student. Both the written report and the presentation should contain supporting Excel charts and tables. It is the responsibility of each student to allocate time for project work and prepare one integrated final report and present their results to the class in Week 8.

Portfolio Management Project Written Assignment

The Portfolio Management Project Written Assignment is valued at 32% of your final course grade and covers all parts of the course. This report must be a minimum of 16 to 20 double-spaced MS Word formatted file plus exhibits, related documentation (e.g., tables, charts, reports, etc.), and at least four appropriate supporting references. It should include an abstract or executive summary of around two hundred (200) words. The written Portfolio Management Project Written Report will be evaluated based on the following criteria:

Portfolio Construction and Management 30% of Assignment Grade

  • Establish objectives for construction and management of a portfolio, policy statement, strategy, asset allocation, industry analysis.
    ·Implementation and application of specific and well-articulated portfolio management strategies; portfolio design, security selection criterion, initial and final Portfolio.
    ·Show time series record including, price, value, cash, return, cumulative wealth, and profit and loss table with discussion.
    ·Development and utilization of investment management tools: including online stock screeners, research tools and information, correlation, etc. Demonstrate understanding of concepts.

Portfolio Management Evaluation and Assessment 30%

  • Provide explanation of the linkages between investment strategies and assets selected for inclusion in the portfolio (i.e., Why were specific securities purchased?)
    ·Risk return analysis; statistics table with geometric mean, standard deviation, beta, percent systematic risk, R2, etc. Including CML, SML and correlation matrix with clear explanations
    ·Compare investment returns to market benchmark; Explain differences between securities, portfolio, index; including terminal wealth, performance measures statistics, Sharpe, treynor, and alpha, including formulas and discussion.

Quantitative Analysis and Critical Thinking 25%

  • Accurate computation of statistics, use of quantitative methods, utilizing professional analysis and critical thinking; including geometric mean, terminal wealth, standard deviation, Beta, value at risk, information ratio, etc.

Presentation of Paper and Writing 10%

  • Organization, format and presentation of paper including title page, executive summary, table of contents, introduction, body, etc. (Submitted on time?)
    ·Writing, grammar, spelling & punctuation; methodology, explanation of all tables and figures
    ·Use of tables, figures and other graphics with labeling to summarize and support analysis, quality of charts & tables.
    ·Logical and smooth flowing transitions and relationships among sections of the written report, with conclusions and recommendations.

Research Approach and Use of Professional Sources of Information and Data 5%

  • Research sources and significance of research information and data, use of APA citation and URL links

Portfolio Management Project Presentation

The Portfolio Management Project Presentation is 12% of your final course grade. The executive presentation will consist of a slide show with approximately thirteen (13) or fourteen (14) slides in PowerPoint format submitted as an attachment. The presentation will be evaluated on its overall impact and the discussion that you lead with other classmates. The class presentations and written reports are graded separately. To receive full credit, the Portfolio Management Project Written Report and the Portfolio Management Project Presentation must be submitted no later than the end of Week 7. Late papers or presentations will be reduced by one letter grade per day. Any assignments received more than five days late will not be graded and will receive an automatic failing grade of zero. Your Portfolio Management Project Presentation will be evaluated based on the following criteria:

Presentation Construction – Depth, style, professional look

  • Posting position, first posting, early posing, late posting
    ·Professional looking, graphics, effects, text, font size, background
    · Presentation of strategy, creativity. Discussion of your investments
    · Interaction with fellow students in presentation week. Respond to questions and comments

Presentation – Clarity, Brevity and Impact

  • Organization of presentation, clarity
    ·Brevity – concise use of words to discuss results, tables and figures, etc. Sufficient explanation of tables and figures.
    · Educational value and Impact of your project, demonstrated concepts and ideas related to investments.

Presentation Content – Supporting Research & Quantitative Analysis

  • Demonstrated understanding of statistics and quantitative methods. Described importance of statistics with formulas, including geometric mean, terminal wealth, std. dev, Beta, R2, alpha, VaR, information Ratio, etc. Demonstrated the utilization of professional analysis and critical thinking.
    ·Asset allocation table, initial and final portfolio weights, industry and sector makeup, portfolio return, etc.
    · Excel tables, accuracy and appearance; text size, background color, scale, fonts, contrast.
    · Excel charts; time series charts cumulative wealth, XY charts for CML and SML. Accuracy and appearance, text size, background color, scale, fonts, contrast.
    · Explanation /discussion to support analysis. Words per page, format. Written support for tables and charts.

Presentation – Specific Recommendations

  • Recommendations and conclusions, critique your own strategy.

The criteria for the paper and presentation will be evaluated based on the following Rubric:


Work of distinction


Superior work, clearly above average


Satisfactory, meets essential requirements


Passing, but below standard


Failing, undeserving of credit


Objective of the Portfolio Management Project

The objective of the Portfolio Management Project is to prepare an “executive level security analyst report and presentation” for a high-net-worth private investor. Your specific assignment is to research, analyze, and prepare a report and presentation to demonstrate your analytic skill and portfolio management understanding to this wealthy client. This report will require independent research (web-based or library), collecting price and dividend data for an investment portfolio over a 5-week period, careful financial analysis, and the proper application of key financial theories and formulas.

You are a Research Analyst working for a top portfolio management firm, ” Portfolio Management” (in no way affiliated with the University of University College). A high-net-worth client has approached your firm with the objective of finding an analyst qualified to manage their large portfolio. Your firm has selected several of its analysts to develop test portfolios in order identify the best person to manage the portfolio of this rich client. You have been selected by your firm to develop a 5-week trial portfolio to present to the client (and class). Because of the importance of this client (and their potentially large investment) your fee for demonstrating superior portfolio selection and management skill will be substantial. The analyst with the best report will become the portfolio manager for this high-net-worth client’s portfolio (valued at over $100 million). Your portfolio management report and presentation will be submitted directly to your firm’s high-net-worth client with the approval of your firm’s Board of Directors. The success of your recommendations will determine the success of your firm in landing this large investor. (It is expected that your portfolio recommendations will not be the same as those reached by other analysts). You should do a market wide financial evaluation to determine the current situation, best investment course, appropriate asset allocation for this important client.

Portfolio Management Project Requirements

Your grade will be based on the quality of the final written report, and your class presentation of the report to your firm’s Board of Directors (the class) and to the high-net-worth client (your instructor). The class will review your presentation, make thoughtful and substantive responses, and you will be required to answer questions regarding your findings and recommendations. Possible topics in your report might be:

  • A discussion of your portfolio strategy, investment policy and security selection criterion.
  • How you selected and constructed your portfolio, and decided on portfolio weights.
  • Considerations of strategic and tactical asset allocation, style analysis, diversification, and sector allocation.
  • An evaluation of your portfolios performance; risk-return analysis, industry, sector, and market analysis, and correlation analysis.
  • Specific recommendations on alternative ways to improve performance with supporting rationale.

You are to consider all necessary and relevant stock market performance and information, trends, and projections in supporting your strategy. These factors should include, but are not necessarily limited to, stock screens, earnings forecasts, P/E ratios and industry comparisons, technical analysis and trends, capital market relationships, and analysts’ reports and ratings. Your report will specifically be concerned with risk and return, sector analysis, cumulative wealth, capital market line, security market line, and performance rankings. In addition, you must consider portfolio weights, commission costs and other factors covered in the course.

You will inform the class of your investment decisions by posting your strategies and initial portfolio in the Week 2 Conference topic “Portfolio Project – Buy your Portfolio“. The commission costs per trade (using CBOE Virtual Trade) are $9.95/trade for stocks and ETFs and $14.95/trade for options. The securities you select for your portfolio can be selected from any traded securities that are available on CBOE Virtual Trading.

Note: Investment constraints are (1) you cannot purchase the S & P 500 Index, (2) you cannot purchase bond funds, (3) you cannot purchase mutual funds (3) you cannot trade securities during the 5-week holding period and (4) Bonds cannot be purchased on CBOE. You will have to simulate your purchase of bonds using Yahoo! Finance or another source and track the purchase on your tracking spreadsheet. .

The investment schedule of the portfolio is as follows:

Week 2- Invest $100,000 in Stocks or ETS

Week 3- Invest $100,000 in Bonds

Week 4- Invest $100,000 in Options

Week 5- Invest $100,000 in Futures

Week 6- Sell the Portfolio

Portfolio Management Project Written Report and Presentation

Your final written report and the final presentation must be submitted at the end of Week 7 and presented to the class in Week 8. Each analyst should post their Report as a Main Topic in the Portfolio Presentations conference. Attach your final Written Report and Presentation (in MS PowerPoint) as two (2) files. Your report will be reviewed by the Portfolio Management’s Board of Directors representatives (you and your fellow students) and the high-net-worth client’s representative (your instructor).

Your class presentation will support your written analyst report and recommendations. Your presentation is a key part of your grade. You are also responsible for reviewing other presentations, contributing to discussions, and responding to their presentations with questions and discussion