Construct an investor policy statement (IPS) for your client.
State objectives.
State constraints and preferences.
Justify the IPS based on the life cycle approach.
Assess current expectations for the U.S. economy and its major sectors.
Defend your assessment with two scholarly sources.
Recommend two U.S. industries for current investment opportunities and identify one industry to sell short.
Compare key characteristics of these three industries.
Develop an investing strategy for the client investment portfolio.
Define the universe of securities to be considered for inclusion in the client portfolio.
Recommend one asset category to exclude from the client portfolio. Justify this recommendation.
Determine the asset allocation for the client portfolio according to the major asset categories in Table 21-1 (p. 569) of the textbook.
Recommend a portfolio strategy of either buy-and-hold, constant mix, or constant proportion. Justify this recommendation.
Construct a portfolio to implement this portfolio and strategy. You may use individual equities, individual bonds, ETFs, and/or mutual funds.
You must invest at least 95% of the portfolio.
Once you have determined the security selections, execute this portfolio in Stock-Trak.
Include a table showing the chosen investments.
Categorize the investments on the table by asset class and style (e.g., equity, aggressive growth or fixed income, capital preservation, etc.).
Recommend an appropriate benchmark(s) for this portfolio.
Compare the identified benchmark(s) to the portfolio in terms of risk and expected returns.
Determine if the portfolio will be evaluated with respect to time- or money-weighted returns.
Determine how the portfolio will be evaluated in terms of risk and explain the measures of risk that will be used.