The Director has asked for recommendations and a report illustrating your optimal analysis for investing $2.5m of excess cash.

Parameters for the research and analysis report are as follows: 1. Investments selections are primarily short term (one year or less), but will consider U.S. Treasury Bills of shorter duration as well as TIPS. 2. A minimum of 3 short term debt money market security types are to be recommended. They may include Federal money market bills, U.S. Savings Bonds, CDs, U.S. Treasury Notes, Treasury Bills, and TIPS. a. Note: money market investments of the range of two to five years are acceptable. b. However, no more than 40% of the portfolio can be invested in a security of with duration of greater than 12 months.

3. A recommendation on the optimal allocation of $2.5 m across the investment portfolio is required. 4. Current (as of the date of this assignment) rates and investments are to be

The analysis report to be presented to the Director is to include: 1. Your concise statement and recommendation of the specific short-term investment options that meets the firms criteria. Followed by: 2. A detailed summary of the investment asset and the parameters you will use in which to base your recommendation. 3. A detailed description of the upside and downside risk of each investment. The latter is of particular importance as the firm may decide to manage excess cash in one or more vehicles for longer than one year. 4. Source identifier for all investment selections

a. Example: website URL 5. A spreadsheet (embedded into the report) illustrating the following: a. Asset category/classification b. Specific money market instrument identifier i. Example: U.S. Treasury CUSIP

6. EAR for each investment 7. YTM for each investment a. If held to maturity b. If sold at the end of 12 months 8. Total return for investment portfolio if held to maturity 9. Spreadsheet model is to include all cell-based formulas for all calculations Your conclusion is to summarize the recommendation made in item #1 above Format for report. Your report must: 1. Be presented in Word file format 2. Analysis must be between 3 to 5 pages maximum, including spreadsheet analysis 3. Excel spreadsheet is embedded into the Word file 4. Submit Excel file separately