HDFS 238 Personal Finance Assignment #2
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HDFS 238 Personal Finance
Rubric for Personal Financial Plan – Assignment #2
DUE: March 23, 2023, at 11:59 PM- Total Points: 30 points
Question #1: Your Perspective on Risk (6 points)
In a summary paragraph, answer the following questions:
1) Identify and explain your risk preference – conservative, moderate, or aggressive
2) What is your anticipated goal for investing?
3) What types of investment/saving mechanisms will you use to help you meet your goal (this must make sense!)?
Question #2: Pick 3 Stocks to Analyze (15 points)
Choose three US publicly traded stocks within the same sector to track, analyze and evaluate. Complete the chart below (6 points total) for each stock. Track the stocks at three time points, such as: Time 1 (10/20 – 10/22), Time 2 (10/21- 2/24), and Time 3 (10/27- 10/28).
**You must have a screenshot for each stock, at each time period (total of 9 screenshots) – attach the screenshots to a Word document for your submission.
Stock Analysis Chart
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Option A |
Option B |
Option C |
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Name; Symbol (i.e. ABC Company stock; ABC) |
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Sector: What sector? (i.e. health, technology, etc) |
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Price at Time 1 (Date, time, and Price) |
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Price at Time 2 (Date, time, and Price) |
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Price at Time 3 (Date, time, and Price) |
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Is this stock performing high or low in comparison to the year? (i.e. use 52 week high/low and interpret) |
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How volatile is this stock? (i.e. use beta and explain/interpret) |
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Where is the stock trading and how is this stock performing in comparison to greater market? (i.e. NYSE or NASDAQ, etc.) |
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Category of Stock (i.e. income, growth, or value) |
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Company Fundamentals (ex. Is this a good company to invest in at this time? How do you know?) |
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Provide a compelling case for the stocks you chose. (6 points) Each description should include:
· One sentence that describes the company - (what does the company do, what sector that they are in, latest news/reports about the company, etc.)
· One sentence that describes the general health of the company- you can use: (trends of stock, how stock has performed vs. competitors, beta/PE ratio (interpret), etc.)
· One sentence that provides your overall recommendation to purchase or not – and why
After each stock description, write a 2-sentence description that answers the following: (3 points)
· Rank your stocks and why
· What factors affected the stock prices and why?
· What additional information do you need to know before you would invest?
Question #3: Analyze Mutual Funds for your Retirement (9 points)
Congrats – you have just graduated from MSU and will be starting at MSU as a full time employee. For this question, you are going to create a retirement portfolio by selecting mutual funds offered as a part of the MSU employee retirement plan. To develop your retirement portfolio, you need to:
· Search for mutual funds, which fit your risk preference at the following site: https://www.tiaa.org/public/tcm/msu/view-all-investments
· Select 3 mutual funds and analyze the funds by completing the fund analysis chart.
· Attach a screenshot of the mutual fund quote (show NAV and return) (no screenshot- loss of 4.5 points)
Fund Analysis Chart
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Option A |
Option B |
Option C |
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Fund Symbol; Fund Name; Fund Family |
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Goal of the Fund |
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NAV (price) |
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Are there fees? If so- what are they? |
Load: Expense Ratio: |
Load: Expense Ratio: |
Load: Expense Ratio: |
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Asset Allocation of the Fund (Funds Five Largest Holdings) (i.e. Stocks 75%; Bonds 25%) |
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Historical Return on the Fund (i.e. 10% YTD) |
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Primary Strength |
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Primary Weakness |
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How does fund match your risk preference and goals? |
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Rank your Funds – 1st, 2nd, and 3rd and provide a reason for your ranking. |
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Documented Source: Yes, by putting an x in this box, I am acknowledging that I have attached a photo in D2L of my mutual fund quote (showing the current NAV and Historical Return figures) (make sure the numbers match what is on your source) (the easiest way to upload a picture in D2L is to put it in your word document) |
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HDFS 238 Personal Finance
Rubric for Personal Financial Plan – Assignment #2
DUE: March 23, 2023, at 11:59 pm EST - Total Points: 30 points
Question #1 Your Perspective on Risk (6 points)
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Requirement |
Points Possible |
Did you complete? |
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In a summary paragraph, answer the following questions: 1) Identify and explain your risk preference – conservative, moderate, or aggressive 2) What is your anticipated goal for investing? 3) What types of investment/saving mechanisms will you use to help you meet your goal (this has to make sense!)?
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2
2 2 |
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Question #2 Pick 3 Stocks to Analyze (15 points)
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Requirement |
Points Possible |
Did you complete? |
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· Complete the chart for three publicly traded companies and attach screenshots for each stock quote · Analysis for each stock (3 sentence description for each) o a description of the company o the general health of the company o your overall recommendation to purchase this stock now or not – and why · Summary Paragraph o Rank your stocks and why o Factor affecting stock price? o What additional information do you need to know before you would invest?
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6
6 (2 points per stock)
3
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Question #3 Analyze Mutual Funds for Your Retirement (9 points)
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Requirement |
Points Possible |
Did you complete? |
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· Complete the chart for three mutual funds (3 points per fund) · Attach screenshots |
9 |
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Chart, written portion, and screenshots should be submitted online via the D2L Assignment Dropbox (click in D2L on the Assessment tab and then Assignments. Place in the Assignment #2 dropbox.) Questions? – please contact your course instructors! Good luck! – Dr. Matteson
2023-03-29