Investment Portfolio Project

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 Description Investment Portfolio Project Project Outcomes After you have successfully completed this project, you should be able to do the following: 1.Describe how different financial markets work. Read and comprehend financial market quotes. Record basic financial transactions. Activities Read the following material under the heading “How to Make Transactions” and turn to Appendix A at the end of this course manual for an example of this project. Spend at least ten to fifteen minutes reviewing The Wall Street Journal. Begin checking the Credit Markets Report each day (check the index at the bottom of page 1 in the WSJ for a quick reference to the page on which it appears). 3. “Buy” at least one T-bill, one Treasury note, and one long-term Treasury bond. You may buy a corporate bond, but emphasize treasury securities. Find the page or pages in Section C of the WSJ which list(s) Treasury notes, bonds, and bills. You will need this information to select a beginning portfolio in Treasury securities. For additional information, refer to pages 84 through 105 in the paperback supplement titled Guide to Understanding Money and Investing, to Chapter 4 in the textbook, and to the material in Appendix A of this course manual. Maintain short-term, intermediate-term, and long-term bonds in your portfolio so you can learn about the yield curve over time. Also, think about how diversification can reduce risk in a portfolio. 4. Refer to the financial pages of the WSJ, and make at least one options transaction and one futures transaction. 5. “Buy” at least one foreign currency and at least one foreign bond. 6. Add at least one put, one call (options) and one future in derivative markets. 7. Add at least one foreign and one domestic stock. 8. At the conclusion of your course work, sell all of your investments and do a brief analysis of your results and reasons for these results. Check the accuracy of your calculations. Comment on the economic and market factors that may have influenced the outcome of your decisions. This analysis should be typed, and double-spaced. You must submit both a sheet of your investments and a written analysis/report. You will not receive credit for the project without both parts of this assignment.