Ctrl MBA 6400: Case Study #1 Revised: 2020-Mar-20 Short-term investment returns: money market instruments. You are an analyst in the insurance industry and are tasked with ensuring that there is a balance of available funds to use to for customer payments in the event of a large disaster like a hurricane during the Atlantic hurricane season of June 1 - November 30. You need to ensure that the funds earn a safe return for the company as they are currently not known to be needed for insurance payouts but they still need to remain liquid. You are tasked with researching and identifying short-term money market investment options for your firm. Assume that the date of this analysis is the current date. The Chief Financial Officer (CFO) has come to you seeking your recommendation on short-term investment options for the upcoming year. You are to provide recommendations and a report illustrating your optimal analysis for investing $3 million of cash in a combination of new T-Bills, CDs and Money Market accounts. o your concise stalment and recommendations of specific short team investment options to meet the firm's criteria A detailed Summessy of the investment asset and parameters you wil we in which to boot yinr recommende hib 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 investment. 4. Source identifier for all investment selections: a. Example: website URL. 5. A spreadsheet (embedded into the report and submitted separately) illustrating the following: a. Asset category/classification. b. Specific money market instrument identifier i.e., U.S. Treasury CUSIP for T-Bills) c. Present Value d. Interest Rate e Price per $100 (for T-Bills) f. Term/Lengthg. Compounding frequency (for CDs and money market accounts) h. Future Value i. Profit. Website URL k. Other information as appropriate 6. Total return for the investment portfolio. 7. 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 embedded into the Word file. 4. Submit Excel file separately. MBA 6400: Case Study #1 Revised: 2020-Mar-20 Short-term investment returns money market instruments. You are an analyst in the insurance industry and are tasked with ensuring that there is a balance of available funds to use to for customer payments in the event of a large disaster like a hurricane during the Atlantic hurricane season of June 1 - November 30. You need to ensure that the funds earn a safe return for the company as they are currently not known to be needed for insurance payouts but they still need to remain liquid. You are tasked with researching and identifying short-term money market investment options for your firm. Assume that the date of this analysis is the current date. The Chief Financial Officer (CFO) has come to you seeking your recommendation on short-term investment options for the upcoming year. You are to provide recommendations and a report illustrating your optimal analysis for investing $3 million of cash in a combination of new T-Bills, CDs and Money Market accounts Due to Corona virus, the Federal Reserve FOMC stated on March 15, 2020, The Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals." https://www.federalreserve.govewsevents/pressreleases/monetary20200315a.htm Explain which lengths of investments are better for that projected direction. Note 1: The Dot Plot is also called "FOMC participants' assessments of appropriate monetary policy: Midpoint of target range or target level for the federal funds rate." See https://www.investopedia.com/dot-plot-4581755 Parameters for the research and analysis report are as follows: 1. Investments selections are short-term money-market (one year or less). 2. A minimum of 3 short-term instruments are to be recommended. a. Only use i Treasury Bills purchased from the U.S. Treasury (https://www.treasurydirect.gov/instit/instit.htm). https://www.treasurydirect.gov/indiv/research/indepth/tbils/res_tbill.htm il New CDs purchased from the issuing bank and ill Money market accounts. b. No more than 35% of the portfolio can be invested in any individual security. T-Bills and CDs and money market accounts must be used. c. When multiple T- Bills are used, they must be of different lengths (.e., 4-Week, 8-Week, 13-Week, 26-Week, 52-Week), d. Purchase new CDs. Do not look at the secondary market for CDs that have already been issued at some time in the past. e. When multiple CDs are used, they must have different maturity terms fi.e., 3-month, 6-month, 9-month, 12-month). f. If the CD states the compounding period, use it. If it does not use monthly as the period. g. Assume that Money Market accounts will be invested for a full year, h. If the Money Market Account states the compounding period, use it. If it does not use daily as the period. I. Do not use any other type of investment.j. Do not use your personal finance account (ie, Fidelity) to get any information for this assignment; use only the Treasury for T-Bills (see above link) and only the issuing bank to get new CDs or open a money market account. 3. A recommendation on the optimal allocation of $3 million across the investment portfolio is required. Define optimal as you see it. 4. Current (as of the date of this assignment) rates and investments are to be used. The analysis report to be presented to the CFO is to include: 1. Your concise statement and recommendation of the specific short-term investment options that meets the firm's criteria. 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 investment. 4. Source identifier for all investment selections: a. Example: website URL 5. A spreadsheet (embedded into the report and submitted separately) illustrating the following: a. Asset category/classification, b. Specific money market instrument identifier i.e., U.S. Treasury CUSIP for T-Bills) c. Present Valued. Interest Rate e Price per $100 (for T-Bills) f. Term/Length g. Compounding frequency (for CDs and money market accounts) h. Future Value i. Profit. Website URL k. Other information as appropriate 6. Total return for the investment portfolio. 7. 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 embedded into the Word file Submit Excel file separately. Ctrl MBA 6400: Case Study #1 Revised: 2020-Mar-20 Short-term investment returns: money market instruments. You are an analyst in the insurance industry and are tasked with ensuring that there is a balance of available funds to use to for customer payments in the event of a large disaster like a hurricane during the Atlantic hurricane season of June 1 - November 30. You need to ensure that the funds earn a safe return for the company as they are currently not known to be needed for insurance payouts but they still need to remain liquid. You are tasked with researching and identifying short-term money market investment options for your firm. Assume that the date of this analysis is the current date. The Chief Financial Officer (CFO) has come to you seeking your recommendation on short-term investment options for the upcoming year. You are to provide recommendations and a report illustrating your optimal analysis for investing $3 million of cash in a combination of new T-Bills, CDs and Money Market accounts. o your concise stalment and recommendations of specific short team investment options to meet the firm's criteria A detailed Summessy of the investment asset and parameters you wil we in which to boot yinr recommende hib 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 investment. 4. Source identifier for all investment selections: a. Example: website URL. 5. A spreadsheet (embedded into the report and submitted separately) illustrating the following: a. Asset category/classification. b. Specific money market instrument identifier i.e., U.S. Treasury CUSIP for T-Bills) c. Present Value d. Interest Rate e Price per $100 (for T-Bills) f. Term/Lengthg. Compounding frequency (for CDs and money market accounts) h. Future Value i. Profit. Website URL k. Other information as appropriate 6. Total return for the investment portfolio. 7. 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 embedded into the Word file. 4. Submit Excel file separately. MBA 6400: Case Study #1 Revised: 2020-Mar-20 Short-term investment returns money market instruments. You are an analyst in the insurance industry and are tasked with ensuring that there is a balance of available funds to use to for customer payments in the event of a large disaster like a hurricane during the Atlantic hurricane season of June 1 - November 30. You need to ensure that the funds earn a safe return for the company as they are currently not known to be needed for insurance payouts but they still need to remain liquid. You are tasked with researching and identifying short-term money market investment options for your firm. Assume that the date of this analysis is the current date. The Chief Financial Officer (CFO) has come to you seeking your recommendation on short-term investment options for the upcoming year. You are to provide recommendations and a report illustrating your optimal analysis for investing $3 million of cash in a combination of new T-Bills, CDs and Money Market accounts Due to Corona virus, the Federal Reserve FOMC stated on March 15, 2020, The Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals." https://www.federalreserve.govewsevents/pressreleases/monetary20200315a.htm Explain which lengths of investments are better for that projected direction. Note 1: The Dot Plot is also called "FOMC participants' assessments of appropriate monetary policy: Midpoint of target range or target level for the federal funds rate." See https://www.investopedia.com/dot-plot-4581755 Parameters for the research and analysis report are as follows: 1. Investments selections are short-term money-market (one year or less). 2. A minimum of 3 short-term instruments are to be recommended. a. Only use i Treasury Bills purchased from the U.S. Treasury (https://www.treasurydirect.gov/instit/instit.htm). https://www.treasurydirect.gov/indiv/research/indepth/tbils/res_tbill.htm il New CDs purchased from the issuing bank and ill Money market accounts. b. No more than 35% of the portfolio can be invested in any individual security. T-Bills and CDs and money market accounts must be used. c. When multiple T- Bills are used, they must be of different lengths (.e., 4-Week, 8-Week, 13-Week, 26-Week, 52-Week), d. Purchase new CDs. Do not look at the secondary market for CDs that have already been issued at some time in the past. e. When multiple CDs are used, they must have different maturity terms fi.e., 3-month, 6-month, 9-month, 12-month). f. If the CD states the compounding period, use it. If it does not use monthly as the period. g. Assume that Money Market accounts will be invested for a full year, h. If the Money Market Account states the compounding period, use it. If it does not use daily as the period. I. Do not use any other type of investment.j. Do not use your personal finance account (ie, Fidelity) to get any information for this assignment; use only the Treasury for T-Bills (see above link) and only the issuing bank to get new CDs or open a money market account. 3. A recommendation on the optimal allocation of $3 million across the investment portfolio is required. Define optimal as you see it. 4. Current (as of the date of this assignment) rates and investments are to be used. The analysis report to be presented to the CFO is to include: 1. Your concise statement and recommendation of the specific short-term investment options that meets the firm's criteria. 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 investment. 4. Source identifier for all investment selections: a. Example: website URL 5. A spreadsheet (embedded into the report and submitted separately) illustrating the following: a. Asset category/classification, b. Specific money market instrument identifier i.e., U.S. Treasury CUSIP for T-Bills) c. Present Valued. Interest Rate e Price per $100 (for T-Bills) f. Term/Length g. Compounding frequency (for CDs and money market accounts) h. Future Value i. Profit. Website URL k. Other information as appropriate 6. Total return for the investment portfolio. 7. 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 embedded into the Word file Submit Excel file separately