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You are a financial manager at a publicly traded firm. You report directly to the CFO of the firm, and they have come to you with a project. They would like a Memo from you regarding the following:

The CEO and Board of Directors have reflected on this year$$s budget and recognize that the company has $$1$ million dollars sitting in a money market fund, earning $75$ basis points.

The CEO has come to the CFO and requested that they invest the $$1$ million dollars in a mix of investments that would yield an average return $($before taxes$)$ of $17\%$ over the next $36$ months.

The CFO has asked you for a Memo that will address the following:

Come up with an investment portfolio that will meet the $17\%$ average rate of return requested by the CEO. Give a basic breakdown of your investment recommendations $(\%$ Lg Cap stocks, $\%$ Sm$.$ Cap stocks, $\%$ bonds, $\%$ Mutual Funds, $\%$ ETFs, $\%$ digital assets, etc.$)$

Remember that the weighted cost of capital for the firm is $9\mathrm{.}5\%,$ and the minimum return must be greater than $6\mathrm{.}5\%.$

You only have $36$ months to reach this goal, so be sure to address the pros and cons of the investment choices you have recommended. Also, be sure to include the amount of risk that will be required for such a return to ensure the CFO and CEO have a clear understanding of what they are getting into.

This is to be a formal Business Memo, so if you need to go back to your MGMT $254$W course and review this, please do$.$

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