Investment Decision Making

Authors

• Muhammad Yaseen, CUNY Lehman CollegeFollow
• Di Wu, CUNY Lehman CollegeFollow

Document Type

Case Study

Publication Date

Spring 5-31-2026

Abstract

A newly established commercial bank, founded in 2021, has accumulated excess capital reserves. The bank is evaluating long-term investment options to deploy this capital in a way that balances growth and risk. The investment committee is considering two primary strategies: investing in a diversified technology-focused ETF, QQQ, or investing directly in selected individual technology stocks.

The bank's senior management wants capital growth, but it also needs to manage risk exposure. A bank cannot treat an investment decision only as a search for the highest return. It must also consider volatility, concentration risk, liquidity, downside periods, and whether the strategy fits the institution's risk tolerance.

You are a financial analyst advising the bank's investment committee. The committee must decide whether QQQ or a portfolio of individual technology stocks is more appropriate for the bank's long-term investment strategy. Historical market data from 2010 to 2020 will be used to support the evaluation.

This is not a recommendation for students to personally invest in any security. Stocks, ETFs, and options can create substantial losses. The purpose of the case is to practice evidence-based investment analysis, risk comparison, and management decision making.

Comments

This OER was funded in part by the CUNY OER Initiative.

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

CUNY OER Funding

CUNY OER Initiative