Stock Market Game
Portfolio Simulation Game and Performance Report(Maximum marks-50)
The goal will be to beat a passive Rs One Million benchmark portfolio comprising of 50% of the market index, 40% long term government bonds(more than 5 year) and 10%cash. Students will apply the concepts learned in the course to select which bonds andstocks to buy and which to sell, and to evaluate the relative performance of the portfolio.Each student will participate in a portfolio simulation exercise managing Rs One Million.You can invest in any exchange NSE, BSE, a series of government and corporate bondsInvestment teams can buy on margin and sell securities short. The requirements for thiscomponent of the grade are:1.Prepare a Fund Prospectus. This statement should be in the form of a one-page, brochure or one-page "specification sheet." It should describe the investmentstyle, restrictions on certain asset classes, name (or names) of investment manager (or managers), benchmark index for performance assessment, expected turnover activity and anything else a potential investor might expect..You may changeyour portfolio as often as you wish, but every transaction costs money(incorporate charges as per charges schedule of www.icicidirect.com).You shouldremain fully invested. Make sure to invest at least in 10 stocks and atleast 40% of your portfolio in a single asset class. Keep track of your portfolio's performance atleast twice a week.
A note on bonds
If you want to invest a certain amount in particular bonds, you need to know the price.2.Each individual will prepare a final performance report that (1) tracks the week-to-week performance of their portfolio, (2) analyzes the macroeconomic, financialmarket and stock-specific news events that may have affected the risk and return performance of their portfolios, and (3) evaluates statistically their relative andabsolute performance using various tools and techniques.Report: Use of a spreadsheet program such as Excel is recommended. Amongother things, the final report should contain:
1.
For each security,
price level and change (performance) for the time period betweenFebruary 25,2009 and March 24,2009
a measure of historical return. At least monthly return of last 2years.
a measure of the security's risk
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Stock Market Game
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| Upload Date: | 06/19/2009 |
| Copyright: | Attribution Non-commercial |
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