Colorado Technical University Investment Portfolio Implementation and Management Analysis

400-600 words APA Format

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Assignment Description

Reminder: Initial Discussion Board posts due by Friday, responses due by Tuesday

Students will be expected to post their first initial discussion board posting by Friday of each week. Discussion posts will be graded and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Students are expected to post their responses to peers by Tuesday. NOTE: All submission posting times are based on midnight Central Time.

Clark Dale is one of the investment portfolio managers at ACG in charge of managing a $15 million Treasury bond portfolio account for a trust fund. He is considering the use of Treasury bond futures in an attempt to hedge the account portfolio. He consults with you with regard to the best plan of action for investment and portfolio management of this account. How would you counsel Clark?

  1. Is a hedging strategy the best plan of action?
    • Explain why you think Clark is considering this strategy.
    • What is the relationship between bond prices and interest rate fluctuations?
  2. Should he consider a long or short hedge strategy?
  3. Explain your reasoning behind your suggestion. What will the return be?

For assistance with your assignment, please use your text, Web resources, and all course materials.