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Stocktrak Final Paper

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Building a successful investment portfolio is a very important task that millions of people put a lot of time and research into in order to be successful. A portfolio is a mixture of different types of investments that blend together to supply a return in which one can use for whatever is preferred. Over the course of the current semester, my finance class and I have been working on our own personal portfolios via an online investment strategy game called StockTrak. This investment simulation gives an enjoyable way for students to learn how to effectively invest capital into financial assets. Each student was granted one million dollars at the beginning of the investment period in which they can devote towards assets such as stocks, bonds, mutual funds, options, and many other resources in order to maximize their return. Going into this project, I tried to come up with a plan on what my overall goal would be. I decided that I planned on investing in stocks that would offer a greater return in the long run. Letting my stocks continuously grow over many years could have potentially yielded a sufficient return in the long-run. This kind of investing would work well for a retirement fund, which is what I decided my ultimate goal would be. I would plan on using my investment income to support my retired life, or if I was lucky enough, to use to fund my children’s education or any other large future expenditure. Personally I am very risk averse and don’t do well with the thought of losing money, so I originally started off by making small investments. However, I realized that if I wanted to start making larger returns I should make larger more risky stock purchases. Considering I had a rather mild risk tolerance and didn’t have a very long time to watch my assets grow, I expected to have annual returns of around 7%. Investing in equitable assets is an action

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