Create a fund:
(Please use the template attached).
Each fund should have:
1. Fund name
2. Summary about the theme of your group of stocks
3. 1yr, 3yr, 5yr and 10 yr historical performance of your stocks (weighted average)
4. Expected dividend calculation (with weighted average)
5. List of the sectors that your stocks come from
6. A full list of the 12+ companies owned by the fund and the percentage of the fund for each
Show work for calculating (a) the growth rate over each time frame and (b) the weighted average for all of your stocks
(I picked a group of stocks at random to give an example of what this assignment should look like) Fund Name: What’s in a name? (WIN) Product Summary: Going public is a big milestone for a company. Among the many preparations a firm must make before launching, management will select a unique stock ticker for identification. On the U.S. Exchanges, a ticker is limited to 1-4 capital letters. And while most companies just go with an abbreviated version of their name others have gotten notably creative with their choices. Interestingly, studies have suggested stocks with "clever" stock symbols outperform their peers. In trying to explain this phenomenon, one of the researches writes "Perhaps a clever ticker symbol has been a useful barometer of the managers' ability.. [to] repeatedly exceeded investors' expectations. Or perhaps a clever ticker matters because it is memorable and has a subtle, but persistent, influence on investors who buy the stock and on those who are considering a merger or acquisition." Initial offering price: $20 per share Expense ratio: 1.1 % Minimum investment: $10,000 Average Annual Performance (assumed): 1 YEAR 3 YEAR 5 YEAR 10 YEAR WIN 18.5% 9.0% 14.8% 5.1% Expected Dividend: 1.67% Portfolio Composition: Services 50% Basic Materials 20% Consumer Goods 20% Financial 5% Industrial Goods 5% Portfolio holdings: 1. CAKE (Cheesecake Factory) 10% 2. NRG (NRG Energy, Inc) 10% 3. LUV (Southwest Airlines) 10% 4. FIZZ (Nat’l Beverage Corp.) 10% 5. ZEUS (Olympic Steel Inc.) 10% 6. FUN (Cedar Fair) [they operate amusement parks] 10% 7. WOOF (VCA Antech) [veterinary services] 10% 8. BUD (Anheuser-Busch) 10% 9. BEN (Franklin Resources Inc) 5% 10. POT (Potash Corp) [Fertilizers] 5% 11. EAT (Brinker Int’l Inc) [Operates Restaurants] 5% 12. MMM (3M Co.) 5% 13. CAR (Avis Budget Group, Inc) 5% 14. ROCK (Gibraltar Industries, Inc) 5% Fund Comparison: Comparing this to the S&P over the same time period. 1 YEAR 3 YEAR 5 YEAR 10 YEAR WIN 18.5% 9.0% 14.8% 5.1% S&P 11.3% 8.3% 13.6% 4.5% My work: 1 yr 3 yr 5 yr 10 yr dividend 1. CAKE 10% -5.1% 4.5% 15.1% 5.8% 1.92% 2. NRG 10% -39.1% -27.0% -12.8% -7.6% 1.10% 3. LUV 10% -2.1% 35.8% 35.4% 9.4% 1.09% 4. FIZZ 10% 73.0% 43.9% 26.4% 18.7% 0.00% 5. ZEUS 10% 80.2% -12.7% 1.1% -3.9% 0.42% 6. FUN 10% 15.4% 11.7% 27.2% 8.3% 5.51% 7. WOOF 5% 32.7% 35.1% 35.7% 7.9% 0.00% 8. BUD 5% 7.9% 7.5% 18.8% 11.8% 3.75% 9. BEN 5% -5.4% -11.2% 2.1% -.1% 2.04% 10. POT 5% -24.8% -21.5% -19.0% 1.1% 2.48% 11. EAT 5% -3.8% 7.7% 20.1% 5.2% 2.62% 12. MMM 5% 24.1% 13.7% 19.7% 8.4% 2.52% 13. CAR 5% -3.8% -6.4% -8.6% 6.7% 0.00% 14. ROCK 5% 94.4% 35.7% 34.4% 5.2% 0.00% To calculate a weighted average: 1 year average = (10*5.1 + 10*(-39.1) + 10*(-2.1) + 10*73 + 10*80.2 + 10*15.4 + 5*32.7 + 5*7.9 +5*(-5.4)+ 5*(-24.8)+ 5*(-3.8) + 5*24.1 + 5*0 + 5*94.4)/100