UMUC FIN340 P1-SELECTING INVESTMENTS ASSIGNMENT

THE SITUATION: You are a Research Analyst working for a top portfolio
management firm, “UMUC Portfolio Management” (in no way affiliated with
the University of Maryland University College). A high-net-worth client
has approached your firm with the objective of finding an analyst
qualified to manage their large portfolio. Your firm has selected several
of its analysts to develop test portfolios in order identify the best
person to manage the portfolio of this rich client. You have been selected
by your firm to develop a 5-week trial portfolio to present to the client
(and class). Because of the importance of this client (and their
potentially large investment) your fee for demonstrating superior
portfolio selection and management skill will be substantial. The analyst
with the best report will become the portfolio manager for this
high-net-worth client’s portfolio (valued at over $100 million). Your
portfolio management report and presentation will be submitted directly to
your firm’s high-net-worth client with the approval of your firm’s Board
of Directors. The success of your recommendations will determine the
success of your firm in landing this large investor. (It is expected that
your portfolio recommendations will not be the same as those reached by
other analysts). You should do a market wide financial evaluation to
determine the current situation, best investment course, appropriate asset
allocation for this important client.

USE THE P1-SELECTING INVESTMENTS ASSIGNMENT FOLDER FOR ALL WEEK ONE
DELIVERABLES

STEP ONE: The assignment for the first week is to develop an investment
policy statement to guide the portfolio construction and asset management.
• To get started refer to Content Week 1. You’ll disciver an Ebook titled,
“Leading the Way with a Clear Investment Policy Statement” and an articles
titled, “The Creation of an Investment Policy Statement”.
• You Investment Policy Statement should be 1-2 pages (300-600 words),
with at least three references. Note: You do not have to create investment
allocations.
• You investment policy statement should include the following:
o Risk
o Return objectives
o Investment constraints
o Taxes
o Your investment theory
STEP TWO: How to submit your completed P1- Homework Assignment
• Please submit your Homework #1 in MS Word format with the following file
name: LastNameFirstInitial_Homework01.docx. For example, if you name is
John Smith, the file name of your Answer Sheet should be
SmithJ_Homework01.docx.
• By the due date, submit Homework #1 to your P1- Selecting Investments
Assignment Folder.