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 P3-PRICE HISTORY NARRATIVE ASSIGNMENT FOLDER FOR ALL WEEK THREE DELIVERABLES
STEP ONE: On a daily basis update the securities in the portfolio. Prepare a Price History Report (Narrative) and submit the report to the P-3 Price History Report Narrative Assignment Folder. Your Price History Report Narrative should illustrate if you have made a profit or loss. The paper should be 1-2 pages (300-600 words).
STEP TWO: You have been given an additional $100,000.00 for the demonstration portfolio. Purchase a Portfolio of five (5) bonds at the beginning of Week 3. (Note: Assume $1,000 par value for all bonds.)
STEP THREE: The Homework #3 Assignment for the third week is to make your first bond Portfolio purchases using the CBOE Virtual Trade Tool ( HYPERLINK "http://www.cboe.com/tradtool/virtualtrade.aspx" http://www.cboe.com/tradtool/virtualtrade.aspx). What did you purchase and how does it relate to the investment policies and strategies statement you developed for Homework #1? Did you modify the investment policies and strategies? If you changed your investment policies and procedures what exactly did you update? If you revised your investment strategies did you inform the client?
Your bond purchase strategy should be 1-2 pages (300-600 words), with at least three references. By the due date, submit Homework #3 to your P3A Add Investment to Portfolio Assignment Folder.