Assume someone who has just inherited $500,000 has asked you for investment advice. By yourself or in a group of up to four students: Determine how much the person will need, when he or she will need the money, and what rate of return the person will need to meet his or her goals. Develop an investment policy statement for the investor. Explain why it is appropriate for the investor. Include all relevant calculations. Your investment policy statement must include all of the objectives and constraints covered in class, and the section on the desired rate of return must show your calculations on a spreadsheet.

Select an appropriate portfolio for this investor in terms of asset classes (or, even better, subclasses) and how much should be invested in each asset class or subclass. Explain thoroughly why this is an appropriate portfolio.

Download and use the template I have attached to this assignment.

Include the spreadsheet needed to calculate the return target.

Include any charts or tables that will make your recommendation clearer

Grading will be as follows:

Introduction 3 points

Objectives

Return Target 6 points

Risk Tolerance 3 points

Constraints

Liquidity 3 points

Time Horizon 3 points

Tax Considerations 3 points

Legal Considerations 3 points

Unique Needs and Circumstances 3 points

Recommendation

Asset Class Allocation 3 points

Why the recommendation is appropriate 3 points

Originality 4 points

Writing Quality 3 points