Assignment: 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?)
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- IPS-Example.rar