Intro to Investments Final Reflection

Course Context

Subject: Introduction to Investments / Financial Markets
Assignment Weight: 10% of Final Course Grade
Due Date: (Instructor to specify)

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Assignment Overview

The goal of the Stock-Trak simulation was not just to “play the market,” but to test the theories learned in class in a realistic environment. This final assignment asks you to evaluate your own portfolio to show how well you translated academic knowledge into actual investment decisions.

Your grade will be based on the quality of your reasoning, not the profitability of your trades. A losing trade supported by sound analysis and clear decision-making will be evaluated more favorably than a winning trade driven by guesswork or luck.

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Part 1: Trade Note Audit

Your portfolio history is the evidence of your participation in the class.

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Part 2: Best & Worst Trade Analysis

In a written report, identify your 5 Best Trades (highest % return) and your 5 Worst Trades (lowest % return). For each trade, analyze the following:

1. Why did you enter this position? You must cite a specific concept from class to justify the trade.
2. Why did the trade succeed or fail? Was it a systematic factor (the whole market moved due to inflation/Fed rates)?
3. If you were managing a real client’s money, would you repeat this strategy? Why or why not?

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Part 3: Performance vs. The Benchmark

Compare your final Portfolio Return against the S&P 500 Return over the same period. Regardless of whether you beat the index or trailed it, answer the following reflection questions:

1. Look at the overall market trend during our simulation dates. Did the S&P 500 go up or down? Did your portfolio generally follow the market’s direction (High Correlation), or did it move independently? Explain why.
2. Review the performance of the 11 sectors during this period. Did your portfolio have heavy exposure to a winning or losing sector? How much of your performance was simply being in the “right place at the right time”?
3. Consider the total hours you spent researching, analyzing, and trading this semester. If you had simply invested in a passive S&P 500 index fund on Day 1 and done nothing else, would you have been better or worse off? Reflect on whether the potential for excess returns justifies the time and effort required for Active Management in your personal financial future.

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