homework 4.30.14

Discussion Questions:

1. What is a futures contract?  

2. How is it diffrent than an option?

3. What's a forwards contract?

4. Will I get rich faster trading futures than trading stocks?

Portfolio Assignment:

 please create a slide deck presentation to walk through the following details:

1. introduction and overview

2. initial portfolio and your assessment of it's risk and return relative to the S&P500

3. investment policy, and your assessment of your likely risk and return relative to the S&P500 when you follow this policy

4. your updated portfolio and your assessment of it's risk and return relative to the S&P500 (by looking back at the past 12 months of returns)

5. adding bonds, mutual funds, and ETFs to your portfolio, and your assessment of it's risk and return relative to the S&P500 (by looking back at the past 12 months of returns)

6. adding options to your portfolio, and your assessment of it's risk and return relative to the S&P500 (by looking back at the past 12 months of returns)

7. comparing risk and return with the S&P500: did your risk and returns compare favorably?  What might you do differently in the future?

8. conclusions: what you've learned from this portfolio assignment, and how it will guide your investing strategy