Investment Policy Statement

Investment Policy Statement Exercise

You will each be given $250,000 to manage for an eight-week time period using the StockTrak simulation program.  Prior to the start of the investing period, you will need to develop your own Investment Policy Statement that describes how you will manage the portfolio.  Questions that need to be considered include the following:

Asset Allocation within the portfolio (what mix of stocks, bonds, and cash are you targeting?)

Goal for the portfolio (what rate of return are you trying to achieve over an eight-week period of time?)

Benchmark (what are you going to compare your results to?)

Portfolio selection criteria (what asset classes are you going to invest in? How are you going to find potential investment choices?)

Limits on investments (how much risk are you willing to take? Willing to borrow money? What % of portfolio can be invested in one stock? How much can a stock decrease before you sell it? At what point will you sell to protect gains?) The deadline for this assignment is January 28, 2019.  The assignment has a maximum of 100 points.  A sample investment policy statement(s) are available on the internet and at least one example will be posted to BlackBoard.  Your personal policy statement doesn’t need to be as formal as these documents but need to address the five questions listed above at a minimum

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