A1. Capstone Student Managed Portfolio Project:
You are required to develop a strategy for investing a specific sum of money in a student managed portfolio of securities. You will be asked to explain the recommendations for assets included in the portfolio. You must specify your intended investment objective and risk tolerance in your recommendations.
You will be required to formulate in-depth analysis and calculations of the proposed portfolio performance's over the last month, six months, one year, five years and ten years prior to the presentation based on data from such sources as Bloomberg, CRSP, COMPUSTAT and Yahoo Finance while utilizing tools such as EXCEL. Portfolio performance should be based on such measures as average return, standard deviation of returns, beta from the Capital Asset Pricing Model and Jensen's alpha.
Student Deliverables pertaining to the Capstone Project:
It is a comprehensive written project analysis due where you should submit a 15-20 pages write-up supported by tables of data-analysis in the Appendix. The capstone project analysis encompass (but not limited to) the following areas, for which a score will be given. These 9 scores are for the purpose of validating assurance of learning:
a. Score 1: The demonstration of the student's ability to identify how the current financial environment affects the risk and return of the portfolio. (FINC-LO1-A);
b. Score 2: The student's ability to extract appropriate financial and accounting data from various sources in order to conduct and support the portfolio analysis (FINC-LO1-B);
c. Score 3: The student's ability to use and appraise the data collected in a meaningful way (FINC-LO1-C);
d. Score 4: The student's ability to estimate enterprise value creation and extract financial asset values from overall enterprise values (FINC-LO2-A);
e. Score 5: The student's ability to evaluate financial assets by reference to peer companies using relevant and appropriate benchmarks of risk and return (FINC-LO2-B);
f. Score 6: The student's demonstration of resulting business strategies that may be driven by secondary ramifications (FINC-LO2-C);
g. Score 7: The student's ability to assess risk (uncertainty) (FINC-L03-A);
h. Score 8: The student's ability to justify her/his recommendation(s) (FIN-LO3-B);
i. Score 9: The student's demonstration of understanding the impact of the global environment on portfolio returns and risk (FINC-LO3-C).