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Summarize your empirical findings in a one-page memo to your boss. (Examples appear on the next two
• 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 boss’s 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).