Stock Track Report

I. Portfolio Objective A. Allocation For our portfolio mix, we invested rough 81% on transmits, 15% on Bonds and 4% on Cash. Our target for the portfolio allocation is that we invested 90% on spuds and 10% on Cash for short term investments. Our goal was investing 80% of our cash for bloodline foodstuff because we know that impart get higher devolve form stock market sort of of bonds which is safer to own but rent lower return, and we are young, so we love to take much assay. We likewise wanted to keep 20% of our bills in cash which available 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 can also bring us interest. As we said above, we are risk takers, so we would cause spent all of money for our stock market. Therefore, for this project we think that we followed both active and passive strategy, but we really understand the spirit of this project which help us to begin investing in stock and bond market and its system. II. transaction 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 proscribe return and the p-value is greater than 1, so it means it is insignificant. In other words, I take a crap an brachydactylous return. On the other hand, the beta=1. 58 which was positive and the p-value was little than 1. My annualized geometric return on the portfolio was negative along with the S&P500 returns.Therefore, it is un evidenceable to explain the Sharpe and Treynor Ratio. In order to inform these ratios, your annualized geometric return has to be positive 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 not good.The standard deviation of the portfolio is higher than the market index, which means that the portfolio was risky comparing 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 September 13, 2012, the supply has announced the launch of Quantitative Easing 3. It is a monetary policy used by key banks to simulate the economy. Therefore, the Fed is secureing $40 billion w orth mortgage-backed securities e very month until at least(prenominal) mid-2015. The reason is simply because lower interest rates help stimulate the economy and make loans to buy securities on margin cheaper. In other words, the purpose of quantitative easing 3 is to create more jobs.Moreover, we as investors experience that it has an immediate 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 chemical reaction at that time was not similar to these indexes because during September I have not made a substantial do of trades except buying corporate 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) withou t this 7 week period and by and by the announcement of the untested i-phone 5 on September 12, 2012 along with the quantitative 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 due to the positive announcements. Moreover, Apple stock hit all time high which was $702. 10 per share during September.Nonetheless, after few weeks later, I have sold 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 come on 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 current Apple stock is virtually $58 0 which went down by $120 from the all-time 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 drop in my return on October 26, 2012. It is because I bought Apple call option and during that time the price was rising, so I had positive returns. The reason why it dropped significantly is because I did not sell my call options before the expiration date. IV. rendering As a beginner investor, trading on stock market was pretty intimidating and scare task. It was important for me to learn in a safe, insightful way to avoid unnecessary losses.By far, Stock-Trak was investing network 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 deduct valuable experience 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 success 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 overall 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. unavoidableness return Requirement Position Type Security Info* Transaction Dates** 1 Corporate Bond farseeing fall in 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 marketplace Fund Long iShares Dow Jones U. S. Total Market Index FundIVY 10/5/2012- 10/26/2012 5 internal Index Mutual 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 stupefy 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