Equity Analyst Project - Individual
Equity Analyst Project - Individual
Scott Hatten
MBA 737-F1WW (W13)
Professor Lauren Thomas
March 2, 2013
This paper will assess my ability to maximize my personal return on investment with an allocation of $1,000,000. The overall goal of this exercise is to obtain the highest return possible within the next 12 months. I am limited to the following asset classes for allocation of all investments: * U.S. Equities * U.S. Treasury Bonds * Cash
This paper will be my prospectus on the justification of the allocation and potential earnings in each class. | U.S. Equities | U.S. 30-Year Treasury Bonds | Cash | Proposed Allocation | 70% | 25% | 5% | $ Amount | $700,000 | $250,000 | $50,000 | Forecast +/- (12 Months) | 13% | 3.0% | 0% | ROI | $791,000 | $257,500 | $50,000 |
Estimated (ROI) for $1,000,000 as of December 31, 2013 = $1,098,500.00
U.S. Equities
As the United States economy continues to grow in areas but struggle in others, the decision to place the largest allocation of funds into this category is made without hesitation. 2013 is the 1st year after a presidential election and the second term for our current president. Typically in situations like this there is less hype about a new leader in office and more emphasize placed on making strategic decisions and outcomes.
Even though were are currently looking at the possibility of thousands of government based worked to be subjected to mandatory pay reductions through a sequester plan, the United States business machines is moving at a strong pace. Since 2008 business and industry leaders have worked to understand the changing dynamics of both the US and International economic challenges and have positioned their organizations to adapt more quickly to those conditions (Investors, 2013).
As consumer spending and consumer confidence continue to increase, U.S. Equities should continue on steady growth plan which is indicated in the strong S&P Indices (currently at 1518.20),
Scott Hatten
MBA 737-F1WW (W13)
Professor Lauren Thomas
March 2, 2013
This paper will assess my ability to maximize my personal return on investment with an allocation of $1,000,000. The overall goal of this exercise is to obtain the highest return possible within the next 12 months. I am limited to the following asset classes for allocation of all investments: * U.S. Equities * U.S. Treasury Bonds * Cash
This paper will be my prospectus on the justification of the allocation and potential earnings in each class. | U.S. Equities | U.S. 30-Year Treasury Bonds | Cash | Proposed Allocation | 70% | 25% | 5% | $ Amount | $700,000 | $250,000 | $50,000 | Forecast +/- (12 Months) | 13% | 3.0% | 0% | ROI | $791,000 | $257,500 | $50,000 |
Estimated (ROI) for $1,000,000 as of December 31, 2013 = $1,098,500.00
U.S. Equities
As the United States economy continues to grow in areas but struggle in others, the decision to place the largest allocation of funds into this category is made without hesitation. 2013 is the 1st year after a presidential election and the second term for our current president. Typically in situations like this there is less hype about a new leader in office and more emphasize placed on making strategic decisions and outcomes.
Even though were are currently looking at the possibility of thousands of government based worked to be subjected to mandatory pay reductions through a sequester plan, the United States business machines is moving at a strong pace. Since 2008 business and industry leaders have worked to understand the changing dynamics of both the US and International economic challenges and have positioned their organizations to adapt more quickly to those conditions (Investors, 2013).
As consumer spending and consumer confidence continue to increase, U.S. Equities should continue on steady growth plan which is indicated in the strong S&P Indices (currently at 1518.20),
References: Jacobs, D. L. (2012). Are Bonds The Next Facebook--Negatively Speaking?. Forbes.Com, 6. Investor 's Business, D. (2013, February 19). U.S. asset demand picks up. Investor’s Business Daily. p. A02. Mangla, I. (2012). Yes, You Can Dump Your Bank. Money, 27-28. Ross, S., Westerfield, R., Jaffe, J., and Jordan, B. (2011-). Corporate finance: Core principles & applications. (3rd ed.).