History homework help. ***The companies have already been selectedAbstract or executive summary is neededStudents will construct three, investment portfolios during weekFor each portfolio, write an explanation of your goal and a quick Investment Policy Statement. “The active portfolio is for an aggressive investor who aims to beat the S&P 500 by 7%” or “The Passive portfolio is for a long term conservative investor who would like to earn income of 3% per year over the CPI.”Part I State the objectives for the construction and management of each of the three (3) portfolios.1. This includes your policy statement (why were certain stocks purchased), strategy, asset allocation, and industry analysis.2. Implementation and application of specific and well-articulated portfolio management strategies; portfolio design, security selection criterion, initial and final Portfolio value.3. Show time series record including, price, value, cash, return, cumulative wealth, and profit and loss table with discussion.***On Friday at the closing, sell all securities. Record the ending prices. Part II: 3-Portfolio Case Evaluation and AssessmentData analysis and Critical Thinking for each of the three (3) portfolios1. Compare P1 to P2 to P3. Which portfolio made the most profit or had the greatest losses?2. Complete the following analyses of P1, P2, and P3.A. Return of investmentB. Expected rate of returnC. VarianceD. Standard deviationE. Risk return analysis3. Compare the returns (or losses) of P1, P2 and P3 to:A. The S & P 500B. Dow Jones Industrial AveragesC. Russell 2000. 4. Use the Sharpe and Traynor formulas to evaluate P1, P2, and P3Part III: Quantitative Analysis and Critical Thinking Summarization1. Accurate computation of statistics, use of quantitative methods, utilizing professional analyses and critical thinking; when comparing and contrasting the 3-portfolios.A. Active versus passive portfolio managementB. Strategic versus tactical asset allocationC. Observations of the 3-Portfolio Case Study
