The Stock Track Simulation Project Essay

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Setting objective is an important aspect when investing in the financial market. For this stock track simulation project, the primary objective is to maximize the return of our capital. The second objective is to reduce the risk. It is common to hear that high return comes with high risk. This statement is present in almost all the finance and pricing-asset theories. It means that there is a correlation between risk and return. “Risk lies at the core of all investments” (Larry Light, 2013). So, the higher return you want to achieve, the more risk you will take to get it. “It’s the classic financial puzzle: how to balance risks and returns” (Larry Light, 2013). For our simulation, we agree to go with high return/risk policy. We run an efficient of our potential different assets and we came to the conclusion that we will take a 12.31% risk for 19.50% return. (Figure 1)
Fear has taken the global stock market as many individual market are in a bearish phase. In effect, countries such as China, Japan, Germany, France and Brazil have seen the prices of their stocks fall significantly this year. It is due to the economic slowdown of the second global economic power, the Chinese economic. It is also caused by the falling price of the oil crude. Peter Kenny, an independent market strategist, said for this purpose that "the meltdown of crude and slowing growth in China have been real headwinds for emerging markets." Investors are also nervous about a new crisis in Europe, in a…

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