Term Project, will upload documents
TERM PROJECT INSTRUCTIONS PART ONE Select five Mutual Funds or Exchange-Traded Funds (ETF), each with a different objective. You can also choose a mix of Mutual Funds and ETFs if you wish. A fund can specify whatever objective its management wishes, and the fund can use its own terminology. You will encounter many objectives other than those listed in the textbook. Common examples are “balanced”, “growth and income”, “small company growth”, “BBB-rated bonds”, “precious metals”, and “international”. Just make sure to select five different objectives. Also make sure that all funds have at least 5 years of performance data available. You must download MONTHLY DATA. The easiest (free) way to obtain the data is at Yahoo Finance. But feel free to use others, such as Bloomberg for instance. A. Prepare a single table showing the following for each of your five funds [TABLE 1]: 1. Fund name 2. Monthly returns for the past 5 years. When calculating returns, make sure to use prices that have been adjusted for dividends (“Adj Close” in Yahoo, for example). 3. Arithmetic average monthly return. 4. Geometric average monthly return. 5. Standard deviation of monthly returns. 6. The current value of $10,000 invested 5 years ago, assuming all distributions were reinvested. B. Prepare a covariance matrix of the five funds [TABLE 2] C. Prepare a correlation matrix of the five funds [TABLE 3] D. Using each fund’s prospectus or information you find on the web, state in your own words the strategy and philosophy of each fund. PART TWO A. Using Treasury bill rates and the S&P 500 index, run a “CAPM” regression to estimate the beta of each fund. Constant maturity 3-month T-bill rates can be obtained on the web site of The Federal Reserve Bank of Saint Louis, Missouri (“FRED”). These rates are quoted in an annualized format, so adjust them according to your needs. B. Repeat part A using this time the Dow Jones Industrial Average instead of the S&P 500 index.C. Show the T-bill rates and the two index levels in tabular form [TABLE 4]. D. Write a 250-word essay on why your answers from part A and B might be different. E. Conduct a “Run Test” on the monthly changes in the level of the S&P 500 index. Write a 250-word essay on the interpretation of the results. PART THREE A. Construct an equally-weighted portfolio of your five funds. Prepare a table showing the arithmetic mean return, geometric mean return, and standard deviation of return for the five-fund portfolio over the five years [TABLE 5]. B. Using Excel, prepare a graph showing the five-year performance of each of your funds and the five-fund portfolio. This chart should show the dollar value of an initial $10,000 investment evolving month-by-month over the five-year period [GRAPH 1]. PART FOUR Using the five-year performance statistics of your five funds and the five-fund portfolio, determine and show graphically the efficient set using the following: A. Mean-variance plot: this is merely a standard deviation / expected return plot showing six points, one for each fund and one for the five-fund portfolio. Identify the point that shows the best return per unit of risk [GRAPH 2]. B. Using the matrix Excel-based techniques learned in class, use the five funds and their statistics to derive the mean-variance frontier. Draw a plot showing the frontier as well as the 5 mean-variance points of the five individual funds [GRAPH 3]. PART FIVE Rank the performance of the five funds and the five-fund portfolio according to the following criteria: A. The Sharpe Measure B. The Treynor Measure C. The geometric mean return
YOU CAN ALSO PLACE OTHER SIMILAR ORDERS ON OUR WEBSITE AND GET AMAZING DISCOUNTS!!!
Our Service Charter
Excellent Quality / 100% Plagiarism-FreeWe employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
Free RevisionsWe keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
Confidentiality / 100% No DisclosureWe make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
Money Back GuaranteeIf the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
24/7 Customer SupportWe have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.