Finance 300: Business Finance, Spring 2001Dr. Pete’s Finance 300 Investment ChallengeA portion of your grade for this class will come from your participation in Dr. Pete’s Finance 300 Investment Challenge on the Virtual Stock Exchange (www.virtualstockexchange.com). In this simulation you will form a team that will have $1,000,000 (simulated dollars, but they’re still fun to play with!) to invest in a portfolio of publicly traded stocks or equivalent securities. Each team needs to develop an investment strategy at the beginning of the game, which can change as the game progresses and/or market conditions change. Specifics: 1. Each student will become part of a four-member team. The team formation sheet must be completed before you start trading. 2. To enter the competition, you must first go to the VSE homepage (www.virtualstockexchange.com). From there, go to the competition by entering the competition’s ID (“DrPete300”) in the space provided. Once you have entered the competition’s homepage, click on the “Join!” button. From there, the VSE will prompt you the rest of the way.3. Trading begins with the opening of the financial markets on Wednesday, February 7, 2001, and will run through Wednesday, May 9, 2001. 4. You must report your initial strategy and opening portfolio report on Tuesday, February 22. The initial strategy report is a one-page narrative of your philosophy and strategy for the game. The portfolio report is a printout from the server. In the report, also provide me with your group’s username for the competition. 5. Teams are free to trade to their heart’s content. All transactions should be the result of a consensus process. It is suggested that the teams meet on a weekly basis to review results and discuss new strategies. 6. A minimum of ten transactions (buys or sells) is required; there is no maximum. 7. All trades will be executed through the www.virtualstockexchange.com website. The competition ID is: DrPete300. The password for the competition is: viking. (Please note: these are case-sensitive!) 8. All trades will be charged a commission ($19.95 per trade), and unused cash balances will earn interest. Short selling and margin purchases are not permitted.9. The end goal, of course, is to make money by maximizing the final total portfolio value. Results will be posted on a periodic basis.10. A final report is due on May 17, 2001. The final report will consist of a portfolio report and a transaction history as of May 10 (the first trading day after the close of the competition), and a three- page (maximum) narrative of what went right and what went wrong during the game. 11. The grading will be based on:3 points: timeliness of hitting all above deadlines.4 points: quality of narratives.2 points: assessment of each group members contribution by their peers.1 point: team finishing above mean for class. Please note that only 1/10th of your regular grade on this project is dependent on actual results. The process and learning are of much greater importance. (OTOH, the members of the top performing group will each have 1 extra credit point added to their final, post-curve, grades.)Good luck trading, and HAVE FUN!!!!!Finance 300: Business Finance, Spring 2001Dr. Pete’s Finance 300 Investment ChallengeTeam Sheet Team Name (Username) _________________________________________ Team Captain ________________________________________Captain’s E-mail Address ________________________________Alternative E-mail ______________________________________ Last Name First Name 4-Digit ID #Instructions: One page per team, please. Submissions are due no later than February 22.Team Name: up to you. Creativity is encouraged; just don’t be TOO creative!Finance 300: Business Finance, Spring 2001Dr. Pete’s Finance 300 Investment ChallengeIntra-group Assessment Team Name _________________________________________ Team Captain ________________________________________ Last Name First Name ID # Grade Instructions: One page per team member. Submissions are due no later than May 17.Please list each team member (including yourself), his or her student ID number, and a grade reflecting that person’s contribution to the team. Each team member should be graded on a scale of 1 to 10. Team members who contributed more should receive a higher grade, while those who contributed less should receive a lower score. Results of this assessment will be kept