McMaster University Investment Challenge Review Discussion

1.Create a portfolio that invests $1 million US and $1 million CAD. All initial portfolios should bebe set up no later no later than Wednesday, September 30. The instructions for setting up theportfolio and accessing the Investment Challenge website will be provided on Avenue.

2. Write a brief review (approx 3 pages double-spaced) for the client that discusses yourrecommended investments and strategy. You should also disclose your approach fees. This isReport 1 of the Investment Challenge. It must be submitted on Avenue no later than Wednesday,October 07 at 5:00 pm. Only one submission per team is required. to

3. You can make trades in your client’s portfolio as you see fit during the Investment Challenge. Allinitial and subsequent trades incur a fee of $9.95 in addition to the overall investment managementfee that you charge the client. The initial portfolio must be established by Week 4 and at least onetrade per week must be made in subsequent weeks up to and including Week 12. Buy-and-holdpurchases of index funds do not provide an interesting learning experience, the possilbe merit ofsuch a strategy notwithstanding.

4. Write a (12-15 pages double-spaced) review of what went well and what did not go well duringthe Investment Challenge. Discuss why you made any trades or why you did not. Compare yourperformance to a relevant benchmark, which you must decide. What might you have donedifferently in retrospect? Was there anything that you learned that might alter your investmentapproach in the future? This is Report 2 of the Investment Challenge.