Stock Track Report

I. Portfolio documental A. Allocation For our portfolio mix, we invested roughly 81% on old-hats, 15% on Bonds and 4% on Cash. Our target for the portfolio allocation is that we invested 90% on stocks and 10% on Cash for short term investments. Our goal was investment funds 80% of our silver for stock trade because we know that provide get prouder swallow form stock mart instead of bonds which is safer to own but shoot down lower recall, and we are young, so we love to take more essay. We withal wanted to keep 20% of our money in cash which lendable for short-term investment.According to the requirements, we ended up spent around 60% on domestic market stock, 10% on international stock market, 10% for short-term stock, 15% on bonds and the rest is in cash which lot also bring us interest. As we said above, we are risk takers, so we would produce spent all of money for our stock market. Therefore, for this forcing out we think that we followed both active and passive st rategy, but we really encounter the purpose of this project which help us to buzz off investing in stock and bond market and its system. II. Performance EvaluationLet begin our Stock-Trak performance which the regression result Stock-Trak ReportBy Khang Nguyen and Tseveendorj Jigmedsanjaa10-08-2012 The 13% of the R-square is explained by the The alpha has a veto return and the p-value is greater than 1, so it delegacy it is insignificant. In different words, I rescue an abnormal return. On the other hand, the beta=1. 58 which was confident(p) and the p-value was less(prenominal) than 1. My annualized geometrical return on the portfolio was negative along with the S&P500 returns.Therefore, it is ridiculous to explain the Sharpe and Treynor Ratio. In order to explicate these ratios, your annualized geometric return has to be verifying along with the market index. As we seen in the table, the R-square is only . 13 which means that only 13% of Y is explained by X which is non good.The standard deviation of the portfolio is higher than the market index, which means that the portfolio was risky canvass to the market index. The alpha has a negative return and the p-value is greater than 1, so it means it is insignificant. In other words, I have an abnormal return. On the other hand, the beta=1. 58 which was positive and the p-value was less than 1. My annualized geometric return on the portfolio was negative along with the S&P500 returns. Therefore, it is unreasonable to explain the Sharpe and Treynor Ratio.In order to explicate these ratios, your annualized geometric return has to be positive along with the market index. III. Discussion On folk 13, 2012, the Fed has proclaimed the launch of Quantitative Easing 3. It is a monetary policy employ by central banks to simulate the economy. Therefore, the Fed is b uying $40 billion worth mortgage-backed securities every month until at least mid-2015. The reason is scarcely because lower interest rates help stimulate the economy and come to loans to buy securities on margin cheaper. In other words, the purpose of duodecimal easing 3 is to create more jobs.Moreover, we as investors experience that it has an flying effects on the stock market. Investors in search of yield will have more reason to buy equities and to lend money to companies. Therefore, during September stock market indexes such as Dow Jones Industrial and S&P500 reacted positively by giving a rise in the index. However, my portfolio reaction at that time was not similar to these indexes because during September I have not made a self-coloured amount of trades except buying unified bonds and short selling on stocks.As a reason for that, my portfolio returns were poorly comparing to the stock market indexes. On the other hand, I was mainly investing on apple stocks (AAPL) t hroughout this 7 calendar week period and later the announcement of the new i-phone 5 on September 12, 2012 along with the numerical easing 3 announcement, apple was outer performing the stock market indexes. At that time, I had number of Apple shares and the price was increasing cod to the positive announcements. Moreover, Apple stock hit all time high which was $702. 10 per share during September.Nonetheless, afterwards few weeks later, I have change all my Apple stocks because there were some minor defects on the i-phone 5 and the announcement of the new mini i-pad did not show any positive effect on the share price of Apple. I was very up to date on the Apple news because, I have invested substantial amount of money on Apple stock. Furthermore, based on the negative news after i-phone 5, I have sold all of my Apple securities because I predicted the Apple stock is going to go down after these rough newss. Hence, it worked as I have planned and the stream Apple stock is rou ghly $580 which went down by $120 from the incomparable high price.Furthermore, as you can see it from the graph of the portfolio, I have a boost in my return on October 22, 2012 and major command in my return on October 26, 2012. It is because I bought Apple call resource and during that time the price was rising, so I had positive returns. The reason wherefore it dropped significantly is because I did not sell my call options before the accomplishment date. IV. Commentary As a beginner investor, trading on stock market was pretty intimidating and daunting task. It was important for me to learn in a safe, insightful air to avoid unnecessary losses.By far, Stock-Trak was investing net income site that has various types of features and tools. Stock-Trak trading is conducted in much the same way as you would trade through your own brokerage account with a broker that supports trading on the Internet. With the Stock-Trak Portfolio Trading Simulation you gain valuable experienc e trading securities at actual market prices. During the seven week trading period, I have learned that there are various types of investments choices including options, money market mutual funds, commodities, bonds and so forth.Moreover, diversifying portfolio is very crucial to triumph on trading. It is a way of protecting your assets by reducing or eliminating risk in your portfolio. Constantly evaluating your stocks to assess their risk is important to your boilers suit success. In additional, this graph will show the relationship of our return with the market return V. Appendices A. End of Day Portfolio values B. fatality return Requirement Position Type Security Info* Transaction Dates** 1 merged Bond Long UNITED AIRLINES INC B-UAL-12. 000-01120213 9/27/2012-10/26/2012 2 Common Stock Short FACEBOOK INC. FB 9/14/2012-10/11/2012 3 Treasury Bond Long T-BOND 10. 625% B-T-10. 625-15082015 9/28/2012-10/26/2012 4 Money Market Fund Long iShares Dow Jones U. S. Total Market ma jor power FundIVY 10/5/2012-10/26/2012 5 Domestic Index unwashed Fund Long JPMORGAN VALUE ADV (A) JVAAX 10/5/2012-10/26/2012 6 ETF Long 7 Call Option Long Apple Inc. AAPLAAPL1226J635 10/19/2012-10/26/2012 8 Put Option Long 9 Index Futures Short S&P500 12/12SP/Z2 10/25/2012-10/26/2012 10 Commodity Futures Long USDIDX DEC 12 DX/72 10/25/2012-10/26/2012