The second final project for this course, due in Module Ten, is a presentation in which you will outline the decisions you made and rationale for those decisions as you created your portfolio. You will discuss how investors will make money based on your recommendations. The presentation provides an opportunity for you to show how you would present complex financial information to an intended audience of stakeholders.

The ability to create a portfolio of derivative instruments and present that information to an intended audience of stakeholders is an invaluable skill in the professional financial field. You will choose one of three case studies to create a portfolio proposal and present this information to stakeholders. When these options and derivative instruments are presented, it is important to consider how the instruments you choose could potentially result in financial gains or mitigate losses for the company or investor and to be able to articulate the rationale behind those choices. It is, of course, equally important to speak to risks, potential losses, and ethical considerations, and to be able to address both internal and external factors that could impact investment return. A skilled financial practitioner will be able to forecast the behavior of these instruments on the market and support this with relevant examples.

This assessment addresses the following course outcomes:

Analyze the functions of derivative instruments within a financial context for supporting portfolio management and corporate finance decisions
Determine risks and benefits of derivative types for identifying their impacts on investment return
Assess the impacts of extrinsic and intrinsic factors on the value and price of a derivative instrument for articulating their influence on portfolio management and corporate finance decisions
Develop portfolio management and corporate finance decisions in compliance with ethical and professional standards
Evaluate the potential gains and losses of derivative instruments based on economic and market expectations
Prompt
Presentation: Based on your final project portfolio proposal, submit your final presentation. Your presentation to stakeholders should highlight the following critical elements of your portfolio proposal: Recommendations and Rationale, Risks and Benefits, Financial Considerations, Ethical and Professional Standards, and Conclusion. Also, share anything from your Excel spreadsheet that supports your findings. These stakeholders may not be experts in finance, so it will be important to communicate effectively by using language that is appropriate for the intended audience. Be sure to use speaker notes to elaborate on your ideas.

Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets).

Presentation: Scenario Introduction
Present the problem/scenario that is being addressed and the recommended derivative instruments to address the scenario, using language that is appropriate for the intended audience.
Presentation: Financial Considerations
Describe potential risks and benefits associated with the recommended instruments, using language that is appropriate for the audience.
Explain how investment and market expectations are communicated through the price and behavior of recommended derivative instruments, using specific examples.
Assess potential gains and losses that could potentially impact the specific derivative instruments recommended, providing specific examples to demonstrate market expectations.
Describe how the recommended investments are consistent with strategies to mitigate identified potential risks.
Describe how specific extrinsic and intrinsic factors could potentially influence portfolio management decisions, providing specific examples.
Demonstrate use of investment selection and management strategies to ensure that the portfolio remains within industry-standard CFA parameters.
What to Submit
For this project, you will submit a PowerPoint presentation. The presentation should be 8–10 slides (not including title page and references) and should utilize speaker notes and the latest guidelines for APA formatting as needed.