Assignment #1: Investing in the Market
FINU 305 Week # 2 Assignment and Rubric
Length: 2 – 3 pages
Due: Week #2
Value: 150 Points for 15% of the total points
Format: Upload in the Blackboard Assignment Submission by Sunday of Week 2
Background: The first two weeks of this course provides an introduction to finance, the financial manager and a fundamental concept: Time Value of Money. The purpose of this assignment is to explore historical investment returns when investing in the overall market (index) and apply Future Value (FV) of money. Using a historical investment calculator found at https://financial-calculators.com/historical-investment-calculator, this assignment will consider the “what-if” of investing in different financial markets. This assignment will provide a visual representation of Time Value of Money (graph) and apply specific variables to the formulas discussed in Chapters 3 and 4 of the textbook (CLO #1, CLO #3).
Directions:
Go to https://financial-calculators.com/historical-investment-calculator and review the purpose of the investment calculator as a tool. This should give some context as to what an index is, how to use the calculator, and important dates. The calculator should look something like:
For each investment (1-3) select:
$10,000 amount invested
One time investment: Yes
Start/End Year:
Recent 10-year period (i.e. 2010-2020)
Recent 25-year period (i.e. 1995-2020)
Adjust the Index/Commodity for Inflation: No
Index: Select a total of 3 (different for each investment 1-3)
The final tab includes a chart of the 3 selected indices. You will want to change Logarithmic Scale to No, providing a consistent interval on the y-axis. In the right hand corner of the chart you can select the menu, downloading the graph (.png, .jpg, .pdf).
Write a 2-3 page paper including the following components:
Introduction – Identify the purpose of the calculator and what potential applications it could be used for. Introduce the three indices or investments that you selected. State the purpose of the assignment.
Body / Analysis – Provide an overview about investment and results of the historical calculator:
Describe the three selected indices. What are they composed of (assets)?
Provide a summary of the 10-year performance, including the chart.
Provide a summary of the 25-year performance, including the chart.
Identify the variables discussed in the textbook. Relate your findings from the calculator with formula 3.1 in the text. Does Future value match the ending dollar amount, given the other variables?
Conclusion – Summarize your findings of this data exercise. Provide any observations or insights you may have about this historical investment tool. Was the highest return the same for both the 10-year and 25-year period?
Rubric: Evaluation Criteria for Assignment #1
Report Elements
Exemplary
90-100%
Proficient
80-89%
Developing
60-79%
Emerging
1-59%
Not Complete
0%
Assignment Introduction
30 – 27
Clearly and concisely describes the calculator, indices selection, and purpose of the paper.
26 – 24
Clearly describes the calculator, indices selection, and purpose of the paper.
23 – 18
Describes the calculator and provides an overview of the assignment.
17 – 1
Vaguely describes the purpose of the calculator. Investment selection and/or overview of paper is not provided.
0
Paper does not provide an introduction or describe the selected investments.
Body / Analysis
50 – 45
Clearly and concisely describes and interprets the chart. Answers all the questions and relates variables to formula 3.1.
44 – 40
Fairly clearly describes and interprets the charts. Answers most of the questions and relates variables to formula 3.1.
39 – 30
Describes charts with unclear interpretation. Answers two or three of the questions. There is reference to formula 3.1.
29 – 1
Vaguely describes and interprets charts. Answers one of the questions, if at all.
0
No reference to performance. No questions are answered.
Charts
25 – 23
The 10-yr and 25-yr charts are clearly provided and referenced properly and analyzed in the body/analysis.
22 – 20
The 10-yr and 25-yr charts are provided and analyzed in the body of the paper.
19 – 15
The 10-yr and 25-yr charts are provided. It might not be referenced correctly or described.
14 – 1
The 10-yr or 25-yr chart is provided. It might not be referenced correctly or described.
0
The charts are provided or performance referenced in the document.
Conclusion
30 – 27
Clearly and concisely summarizes the findings. Insight provided into the use and application of calculator tool.
26 – 24
Fairly clearly summarizes the findings. Some insight provided the use of calculator.
23 – 18
Somewhat summarizes the investment performance. Insights regarding the calculator are unclear.
17 – 1
Vaguely describes the performance. There are no additional insights regarding data or calculator tool.
0
No conclusion or summary is provided.
Writing Format & Mechanics
15 – 13
Paper incorporates all criteria in the assignment detail at an exemplary level. There are no grammar, APA, or spelling errors.
12 – 10
Paper incorporates all criteria in the assignment detail at a proficient level. There are minimal grammar, APA, or spelling errors.
9 – 7
Paper incorporates most criteria in the assignment detail at a developing level. There are grammar, APA, or spelling errors.
6 – 1
Paper incorporates some criteria in the assignment detail. There are numerous spelling, grammar, or APA errors.
0
Paper is off topic or not sufficiently developed. The paper is difficult to understand with numerous spelling, grammar, or APA errors.
FINU 305 Rubric Page of 3
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