FIN 402 Week 1

Individual Capital Markets and Investment Banking Process Paper

Resources: Week One readings

Prepare a 1,050- to 1,400-word paper in which you analyze the investment banking process. Address the following:

Describe the investment banking process, including portfolio construction.

Describe factors that must be considered when selecting among asset classes for an investment portfolio.

Describe capital market instruments used in portfolio construction.

Make general recommendations for the composition of an investment portfolio. Include rationale for your recommendations.

Prepare to discuss this assignment in class.

Format your paper consistent with APA guidelines.

Discussion Questions

What are capital market instruments? How are they used? Which is most important? Explain your answer.

What is an asset class? How are asset classes selected? What factors affect the selection?

Let us assume economic forecasts predict falling gross domestic product and high inflation over the next couple of years. Based on this information, if you were a portfolio manager, what would your recommendations be for investing in the construction industry? Why? What about investing in the health care industry? Why?