Financial Portfolio Analysis for aggresive risk taker

As part of my coursework, I created a stock portfolio inclusive of stocks, indexes and Options for an aggresive risk taker looking to invest $50,000 in the market.

This was a proof of concept project that I did as part of my coursework in Financial Information Systems. The goal was to finalize stocks, indexes and options for a real-life user. I used the following steps to do the analysis:

1. Looked at the stock market to identify a portfolio which would suit the requirements. Considered the following aspects when looking at the stocks:
2. Diversification
3. Correlation between stocks
4. Risk associated with each stock
5. Added Benefits (Dividends)
6. Defined the KPIs for each stock and selected ones with best performance
7. Chose an index on similar attributes as described above.
8. Decided to put options in place to minimize risk. Looked at the stocks which are most volatile and placed appropriate options after doing a cost benefit analysis.
9. After having chosen the stocks, optimized the portfolio weighting for each stock and came up with number of stocks to purchase.
10. Computed Maximum Expected Loss using value at risk and expected shortfall models and gave the green light as expected risk was lesser than the marker risk
11. Projected potential returns using CAPM Model and by running a monte carlo simulation.
12. Calculated total returns based on the investment and presented findings in front of a group of over 100 people.

Find the report here:

Financial_Analysis_Report