1. Portfolio Management: Asset Allocation and Portfolio Review
Research and Trade #4
Portfolio Management: Asset Allocation and Portfolio Review

2. Stock Pitch and Think-or-Swim
Teams of 1 – 4 people
Presentations and sign ups due on October 31st
Presentations on November 6th
Additional information will be in this weekend’s newsletter
tdameritradeu.com
Code: Fall201PaperOmega88
Start with $30,000
Begins 10/22/2018

3. Diversification Review
What it is:
a form a risk management
How it is used:
it uses many securities to reduce risk
Measures:
Beta: Covar(R[a],R[I])/Var(R[I]); risk v market
Sharpe Ratio: (E[a]-Rf)/Sd[a]; measures efficiency, higher is better
Upside: amount above v below; want 100%+ compared to benchmark

4. What is Asset Allocation?
The way you diversify
Optimize Risk v Reward
Accomplish goals
Risk Profile
Time Span

5. How to Determine a Good Allocation
Age:
Fixed income v equity, younger v older
Goals:
What is being saved for? What is it’s price?
Term:
How far away are the goals?
Commitment:
How much time will be spend monitoring investments?
Risk Tolerance:
How much are you willing to risk?

6. Reasons for Review Different performance among investments
Change in Risk/Quality
Change in Goals
Poor/Good Performance
Change in Risk Tolerance/Attitudes

7. Rebalancing Changing a portfolio to meet target Sell high performing
Buy low performing
Change to a new allocation

8. Kahoooot!