FIN 402 Week 4 Individual Assignment Risk and Return Tradeoff Memo

Resources: Constructing and Managing a Portfolio Simulation, Electronic Reserve Readings, University Library

Complete the Constructing and Managing a Portfolio simulation on the student website.

Conduct research concerning the risk and return tradeoff, and the relationship between investment strategy and performance.

Prepare a 1,050- to 1,400-word memo to Rainier Ekstrom, Casa Bonita’s chief executive officer, in which you analyze risk and return tradeoffs associated with the organization’s investment portfolio. Address the following:

Decisions you made in the simulation

A discussion of how the Sharpe ratio helps make investment decisions

Recommendations for changes in the organization’s investment strategy to improve its performance