Financial Management of Corporations
Paper details:
Summarize your empirical findings in a one-page memo to your boss. (Examples appear on the next two
pages.)
Use proper memo heading.
In paragraph one, report the stocks that are riskier and your predicted returns for the coming
year. (1-3 sentences)
In the second paragraph, state how you classified stocks as risky or safe and explain why your
classification scheme is reasonable. (4-8 sentences)
In the third paragraph, either support your bosss plan which is to get clients to increase their
holdings of the stocks you identify or else refute his plan as being a sub-optimal and suggest a
better plan. Use what you have learned about investment theory (6-9 sentences).
