Choose 2 “Alts,” or Alternative Investments, to research and analyze.
Describe their investment objectives, strategy, and recent (3 or 5 year) performance.
Review and interpret at least 2 – 3 risk adjusted return measures, or ratios, that we’ve covered
in class (Volatility, Sharpe Ratio, Treynor Ratio, Alpha, Beta, etc..) applied to your Alts.
Assess how you feel adding a 5 – 10% allocation of these Alts can improve a traditional stock
and bond portfolio.
Finally, compare and contrast the 2 Alts in terms of performance, risk and ability to diversify
an investment portfolio. Focus also on why you believe these Alternative Investments are
highly un-correlated to an existing stock and bond portfolio.
Econ415 Alternative Investments Portfolio Theory
Rubric for the Econ415 Alternative Investments Portfolio Theory
Exceeds Expectations (3) | Meets Expectations (2) | Below Expectations (1) | |||
I. Reasoning | 1. The writing is logical, orderly, internally consistent, and well developed. Elegant. 2. Inferences are well supported by evidence. 3. Ideas are well synthesized, following an established outline. | 1. Logical, orderly presentation is apparent. 2. Inferences are supported by evidence. 3. Effort is made to synthesize ideas from different sources. | 1. Presentation is illogical, disordered. 2. Inferences are unsupported by evidence. 3. Ideas are presented without attention to synthesis. | ||
II. Communication | 1. Words are well chosen. Scholarly expository style 2. Organization is so excellent as to be unnoticed. 3. Appreciation of reader’s perspective is obvious. 4. Writing is flowing and easy to follow. 5. Limited quotations and paraphrasing well integrated with original writing. | 1. Word choice is acceptable for the intended audience. 2. Generally good although obvious organization. 3. Shows awareness of reader’ perspective. 4. Sentences and paragraphs relate to each other, though connections are occasionally remote or obscure. 5. Original writing supported with occasional quotations, paraphrasing. | 1. Word choice is inappropriate. Informal, stilted, arcane, or idiosyncratic. 2. Incoherent organization fails to lead to the intended conclusion. 3. Lack of awareness of reader’s perspective. 4. Poorly formed sentences and paragraphs, with many awkward passages. 5. Heavy reliance on quotations or paraphrasing. | ||
III. Technical Usage | 1. Technical language or lay language is appropriately selected. 2. Usage is precise, appropriate, parsimonious and enlightening. | 1. Generally makes the appropriate choice of lay language or technical language. 2. Uses technical terminology correctly. | 1. Inappropriately chooses lay terminology when technical terminology is appropriate. 2. Uses technical terminology incorrectly. | ||
IV. Grammar | 1. The document is free of grammatical errors. | 1. Grammatical errors are minimal and do not detract from the communication. | 1. Grammatical errors substantially detract from the communication. | ||
V. APA Style | 1. APA style is employed perfectly. | 1. Few errors in APA style and most are inconsequential. | 1. Many features of APA style are ignored. | ||
VI. Mechanics | 1. No spelling, punctuation, or format errors. | 1. Minimal spelling, punctuation, or format errors. | 1. Spelling, punctuation, or format errors are abundant. | ||
VII. Content/Focus | 1. Sources of ideas clearly documented for further research. 2. Clear purpose and direction. Theme captures reader’s attention and sustains the paper. 3. Events preceding icon, following icon, and the icon itself are well balanced in an engaging story. | 1. Sources of ideas are mostly documented, some inferences needed. 2. Purpose and direction discernible. Theme is clear and partially limited. | 1. Sources of ideas are inadequately documented. 2. No evidence of purpose or direction. Unclear theme. 3. Scant or no coverage of events preceding icon, or those following icon, or those in the icon itself. | ||
VIII. References | 1. Citations are appropriate to the content of the paper in breadth, depth, and currency. Many more than the minimum number of sources. 2. Citations are correctly cited in both the body and the reference section. 3. Citations match in the body and in the reference section. | 1. Citations are appropriate, although not ideally matched to the content of the paper. Five sources and at least three journal articles. 2. A few incorrect citations are noted in either the body or the reference section. 3. A few citations in the body do not match those in the reference section. | 1. Inappropriate references. Fewer than 5 sources or fewer than 3 journal articles. Reliance on web sources. 2.. Many errors in the form of citations in either the body or the reference section. |
Econ415 Alternative Investments Portfolio Theory