Analyze the portfolio shown below. Then, answer the questions using complete sentences. Portfolio A U.S. Treasury...
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Analyze the portfolio shown below. Then, answer the questions using complete sentences. Portfolio A U.S. Treasury Certificate of Deposit 21% Bond 18% Checking Account 10% Common stock in developing firm 34% Junk Bond 17% Part 1 (6 points): Evaluate the diversity of this portfolio. Explain, using complete sentences, if this portfolio is not diverse, minimally diverse, somewhat diverse, or extremely diverse. Why? Part 2 (6 points): Describe the risk factor of this portfolio. Is this an aggressive, conservative, or moderate portfolio? How do you know? Part 3 (6 points): Describe an individual who might carry this type of portfolio. Include details such as • age • occupation • family situation (single, married, single with children, or married with children) • investment goals Portfolio 1 pPortfolio 2 Portfolio 3 $4,000 $1,000 $13,500 $1,050 $1,000 $2,250 5.7% $700 $15,000 $850 4.2% $2,700 $1,700 $3,250 Calculate the weighted mean of the RORS for each portfolio. I 12, ROR 11.3% $900 -35.5% $1,000 32.4% $5,400 Analyze the portfolio shown below. Then, answer the questions using complete sentences. Portfolio A U.S. Treasury Certificate of Deposit 21% Bond 18% Checking Account 10% Common stock in developing firm 34% Junk Bond 17% Part 1 (6 points): Evaluate the diversity of this portfolio. Explain, using complete sentences, if this portfolio is not diverse, minimally diverse, somewhat diverse, or extremely diverse. Why? Part 2 (6 points): Describe the risk factor of this portfolio. Is this an aggressive, conservative, or moderate portfolio? How do you know? Part 3 (6 points): Describe an individual who might carry this type of portfolio. Include details such as • age • occupation • family situation (single, married, single with children, or married with children) • investment goals Portfolio 1 pPortfolio 2 Portfolio 3 $4,000 $1,000 $13,500 $1,050 $1,000 $2,250 5.7% $700 $15,000 $850 4.2% $2,700 $1,700 $3,250 Calculate the weighted mean of the RORS for each portfolio. I 12, ROR 11.3% $900 -35.5% $1,000 32.4% $5,400
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Part 1 The diversity of this portfolio is somewhat diverse While it includes various asset classes such as US Treasury Bonds Certificate of Deposit Ch... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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