Maureen meets Eileen, a middle-aged lady, at a nearby coffee joint and learns that she is a
Question:
Maureen meets Eileen, a middle-aged lady, at a nearby coffee joint and learns that she is a property agent based in the United States. She has a net worth of USD10 million, of whichshe plans to utilise USD1 million in a month for a charitable commitment that she previously made. Eileen is acheap lady and her expenses do not vary much from month-to-month. She would also like income from her investment portfolio to defray some of her annual expenses and is, at the same time, concerned about the general rise in prices of goods and services over time. In addition, Eileen hopes to have a portfolio that can beliquidated quickly at fair value. Although she is not an American citizen, Eileen hasbenefitted from opportunities afforded to her in the country and wishes that her investments contribute to growth of American businesses and its overall economy. As planned, Maureen reassures Eileen that she has prepared six suitable portfolios for her, as shown below:
Discuss how Eileen's circumstances will affect her allocation to each asset class (low, medium, or high) and, hence, recommend a portfolio that is most suitable for her. No calculations are required.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr