Finance/Business analysis中最常见也是最难解决的莫过于portfolio analysis代写了，本文是Boston University代写中的AD717课程代写案例。
Term Project
Term Project AD 717 Final Project
For your term project, you are going to build a portfolio of 12 stocks and write a prospectus of your mini-fund.
Consider the following three investors:
- Bryant is a 25-year old young professional, employed in a major city in the northeast. Since joining the workforce three years ago, he contributes as much money as possible to his retirement accounts which is invested in a diverse set of index funds. An avid fan of Benjamin Graham’s “The Intelligent Investor”, he has decided to consider a few individual stocks of companies with good and stable long-term prospects as well as a great management.
- Nicole is 52 years old, and a few months ago, she retired from her well-paying job after aggressively saving and investing her money prudently for much of her life. While she could go back to work if necessary, she prefers her financial independence. In order to maintain a steady cash-flow, her portfolio is heavily geared towards high yielding stocks, allowing her and her family to live of dividend payments for the most part. Aware of the downturn of General Electric and their dividend cut, she focuses on companies from which she expects a solid and steady dividend growth.
- Peter is in his mid 30s. He did not start a well-paying job until two years ago, and therefore, he is behind on his retirement savings. To make up for lost time, he is contributing the maximum allowed to his individual retirement account (IRA), which is invested in market ETFs. Additionally, he sets aside $10,000 every year for the next ten years for risky high-growth investments. Select one of these investors as your client for whom you create the portfolio of 12 stocks. Your stocks must be listed on a US stock exchange and their IPO must be more than five years ago. Then, perform the following exercises:
- Write one paragraph per stock in your portfolio explaining clearly why this stock is a good choice for your portfolio given the investor profile. Support your answers with both description of the firm and their business model and appropriate financial ratios.
- Download five years of monthly stock prices from September 2017 to September 2022 and compute the monthly returns from October 2017 to September 2022. (You need to download 61 prices to compute 60 returns).
- Download the file https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/ftp/F- F_Research_Data_Factors_CSV.zip. In this file, you find excess market return, SMB, HML and the risk-free rate. Use the risk-free rate to compute the excess returns for your stocks.
- Run a regression of the stocks’ returns against the excess market return to find the CAPM beta.
- Make a forecast for the alpha of each stock, that is, the return that you expect the stock to perform minus the return predicted by the CAPM. Justify your alpha based on the firm’s business models and financial ratios.
- Build an active portfolio with the 12 stocks according to Chapter 27.1 in our textbook.
- Run a regression of the stocks’ returns against the excess market return, SMB and HML to find the market beta, SMB beta and HML beta. Categorize each company into
- defensive, neutral or aggressive for the market beta;
- small, neutral or big for the SMB beta;
- value, neutral or growth for the HML beta.
- Run a regression on the portfolio with the weights you find in part 6 against the excess market return, SMB and HML to find the market beta, SMB beta and HML beta of the entire portfolio.
- Based on your findings and the investment
strategy, identify a benchmark portfolio against which you will compare your portfolio. - Recreate the sections in purple for your portfolio. A better copy of the mutual fund sheet can be found in Chapter 4.8 of our textbook.
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