Virtual Stock Exchange
Portfolio Management Project

Purpose

The purpose of using Virtual Stock Exchange is to give you a better understanding of trading strategies and portfolio management. You will also learn a variety of financial instruments and their risks and rewards as they apply to asset management.

Project Overview and Goals

Acting as a prospective portfolio manager for UHNW clients, your potential clients have entrusted you with $100,000 to invest at your discretion for a period of 8 weeks.

They are expecting you to invest their money wisely and profitably. While your clients desire a high rate of return, their tolerance for risk is considered low.

Additionally, your prospective clients are considering other asset managers (your classmates) and will be ranking each according to the success of their portfolio management. You will be able to track how you are measuring up throughout this exercise.

At the end of the trading period, if your clients are satisfied with your performance managing their portfolio, they will extend their relationship with you.

Specifically, they are concerned about the following criteria:

Returns

Absolute return: The total dollar increase in the portfolio over the trading period
Risk-adjusted return: The return on the portfolio taking into account the level of risk assumed by you, as measured by the Sharpe Ratio

Registration

To register your account, go to Game Steup

Password: PHS2020

You can log in using your google account.

Registration is free. Enter the login code above.

Portfolio Management Constraints

Each position you take in an asset must be a minimum of 5% of your assets and a maximum of 20% of your assets.
Cash must not exceed 20% of your portfolio at any time. We want you invested, not sitting on the sidelines.

Sources of Information for Portfolio Managers

Sources that you may find to be particularly valuable for your research include:

MarketWatch: http://www.marketwatch.com/
Wall Street Journal: wsj.com
Yahoo Finance: yahoo.com
Daily Treasury Yield Curve Rates: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
Walker Management Library: Walker Management Library Research Links for Managerial Studies Students

Whatever you earn or lose will be added/subtracted from your stukent account.