Portfolio Project - Advanced Managerial Finance

Purpose: To learn and practice the skills associated with the development of a corporate financial portfolio.

Scope: The student will choose a company and upon approval of the instructor they will develop a portfolio based upon their stated strategy and objectives. The portfolio investment period will be the 60 days prior to the end of the quarter.

Specifics: After approval the student will develop a portfolio and written analysis the following details:

-Develop a specific set of objectives and an investment strategy to accomplish those goals. Goals and objectives should have a maximum timeline of 3 years.

-In your capacity as CFO, develop a portfolio to accomplish your stated objectives and have the following criteria:

• Have a foreign currency position. This may be for a foreign expansion exposure, sales exposure, and/or as a counter currency for a domestic exposure
• Have a bond position - domestic, foreign, euro as appropriate.
• Have equity position - domestic, foreign, GDR, etc...as appropriate.
• Have a derivative position - domestic, foreign...as appropriate.

-You need to discuss how you plan to fund your objectives beyond what's expected in the portfolio. Explain and support that position - if appropriate you can securitize your funding position and add to your portfolio.

-Track your portfolio for the 60 days with actual data then project to your final date and estimate your success for your portfolio.

-You should make an estimation of your portfolio's beta and support that estimation.