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MGFD10: Investments

THE $2 MILLION DOLLAR TRADING CHALLENGE

The Rules of the Game

Your team will manage an investment portfolio of $2 Million Canadian dollars. The challenge runs from market open on Friday, September 20th until market close on Friday, November 22nd.  

Objective:       

  • You must outperform the Canadian stock market as measured by the performance of the TSX/S&P Index using at least two investment strategies.

Constraints:    

  • You  may only invest in US or Canadian-listed equities or bonds available in Rotman Portfolio Manager.
  • Commissions (fees) will be charged at the rates posted on RPM.
  • You may buy on margin and short sell subject to margin requirements imposed by RPM. 
  • You may not invest in any derivatives or commodities, or in ETFs for which the underlying assets are commodities or currencies. You may invest in the stocks, ETFs and bonds of companies that extract, produce or distribute commodities. You may also invest in ETFs that invest in foregin stocks or bonds on a currency-hedged basis.
  • You must diversify your portfolio by holding at least six different securities at all times. Cash and cash equivalents may not exceed 10% of the market value of your portfolio at any time.
  • As in the "real world" of investing, you must maintain complete records, including detailed portfolio composition and individual trades you made. RPM helps you that. Your working notes should include the date, and a brief explaination of the rationale for each trade. These should be included in the appendix of your final report.