Bob Neiswonger Investments T 6:30 Professor Schadler Stock-Trak: Project Part II The Stock-Trak investment simulation program began on August 30th, which marked the first day that trading was allowed. A total available amount of $300,000 was used for investing. The objective of this assignment is to maximize the value of the portfolio through November 19th, which was the last day of the trading period. I began the process of choosing specific investments for my portfolio by taking an asset allocation questionnaire (appendix I). Since the objective was to maximize portfolio value, I made sure for each question asked that I chose the answer with the most risk. My reasoning being that having my money in risky investments will on average lead to a greater return than investments with lower risk. The objective did not mention risk tolerance, and I wanted a portfolio composition with a good chance of earning exceptional returns. After completing the survey, I ended up with an aggressive asset allocation plan (appendix II). This stated that 85% of my money should be invested in stocks, while the remaining 15% of my money should be invested in bonds. I had several basic strategies that I felt would lead to my portfolio having high returns. First I felt that it was important to invest early on in the trading period so that I would not miss any positive returns the market might yield (I was fully invested by September 10th). Secondly I wanted to buy all my investments and hold them because I believe that this strategy will best maximize returns. Timing the market I felt was lucky and too complicated. Finally I wanted to make sure that I bought at least 25 separate assets, so that I could be properly diversified. I used the Wall Street Journal to pick my individual stocks. My personal strategy was to pick stocks that were at or near their 52 week low in price. I felt that corporations, especially those that were well known, at or near their 52 w...
