You have been hired as a Financial Analyst by TK Enterprises. As an ambitious new financial analyst,
Question:
You have been hired as a Financial Analyst by TK Enterprises. As an ambitious new financial analyst, you want to make a good impression on the firm's management and your direct supervisor.
As your first assignment, you have been asked to create a diversified portfolio. Since the firm believes in collaboration, you will work with another financial analyst in the firm. The following are guidelines and requirements that will need to be met:
Assume an initial investment of $100,000.
The investor: Ms. Greta Roadie plans to retire in 25 years and is willing to accept moderate risk for a portion of her investment.
She is requiring a return of 8% for moderately risky products, however as any investor, she requires a higher return as risk increases.
Research various instruments that are currently available to investors today. What would you select to insure a fully diversified portfolio? Be sure to spread the risk and include a full spectrum of products.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young