LENGTH: 1 hour

LEVEL: Beginner

Learning Objective:

Students will learn how to create a diversified, laddered portfolio.

Instructions:
Your assignment is to create a laddered portfolio for an investment horizon of 5, 10, and 30 years (How to create a new portfolio here). 

A laddered portfolio means that the maturity dates of the bonds must be staggered to spread the risk of interest rate moves. 

You must select 10 bonds for each portfolio and distribute maturity dates evenly while considering your desired risk/return. Ideally, you would diversify your selection among industries, regions, and corporates vs. government. Use the filters on the Corporate Bonds and Government Bonds pages on EquitySim to help you build your portfolio. 

After you have created your portfolio, write a brief explanation of the allocation of each of your portfolio. Make sure to note the differences between the average yield and coupon of each of them.

Deliverables:  

  1. Portfolio holdings page 
  2. Exercise document

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