Case Study Spring 2023 - Read-Only - Saved to my Mac Animations Slide Show Heview View Recording 9 Tel me Aa E Convert to Overview and Instructions The purpose of this case study is to apply the materials covered throughout the semester, including understanding the investment landscape, investment policy statements, investor risk tolerance, efficient portfolio construction and performance metrics. The following slides show portfolio allocation information for an actual client. All personal information has been redacted to maintain confidentiality. Investor profile: Pete is 62 years old, married, and has three adult children. He is currently employed in the energy industry and earns roughly $1 million annually. He anticipates retiring completely from this position in three years and relying solely on his portfolio to maintain his and wife's combined spending level of $400K annually. In addition to these portfolio assets, they also own a $2 million home in The Woodlands. Pete and his wife have no other financial assets or business interests. Beyond the value held in this portfolio, the only income they will receive is Social Security, which is not particularly impactful given their level of assets and spending. Pete is more risk averse than the average client. His approach to investing generally places wealth preservation as the top priority, followed by keeping up with inflation, and capital appreciation after that The volatility in financial markets during the onset of the Covid crisis was unsettling to Pete despite his ability to "weather the storm." At retirement, Pete and his wife plan to downsize their house. However, given the run-up in real estate value in the wake of Covid, and despite the rise in interest rates, Pete believes that he can sell his current house for $2.5 million after a neighbor's house for $2.4 million in early 2022. He and his wife are emotionally attached to house as this is where they raised their three children. Please complete the short response prompts on the following slides while maintaining a focus on what the implications of your observations are, why a client would be interested in them, and potential "fixes" where necessary to better align the portfolio with the needs and wants of the client within the constraints of the financial markets. Please respond completely and clearly. Complete this assignment assuming you needed to present it to your employer and to the client. Add-ins loaded successfully Notes Comminti wibility: InveMigateD Case Study Spring 2023 - Read-Only - Saved to my Mac - Jones Animations Silde Show Review View Recording Q Tellme AAA Taxable Investment Account Allocation Use this to respond to the Taxable Investment Account Allocation questions on the next slide. . Preferred Stock Preferred Sticks Tux-Exempt Cash 413 Charles Schwab: $7,101,300 Charles Schwab: 410400 Total: $7,511,700Case Study Spring 2023 - Read-Only - Saved to my Mac mitions Animations. Slide Show Review View Recording ) Tell me Taxable Investment Account Allocation Refer to the table below for performance information to answer the following questions. The benchmark is a custom asset weight-based benchmark (allocations across assets of the portfolio target those in the benchmark.) YID Return 1-Year Return 3-Year Retum 5-Year Retum Standard Sharpe Ratio Deviation (5- Year Lookback Lockback Pete's Portfolio 4.2% 7.6% 105: 10 1% 12.7% 0 49 Benchmark 8.51 Has Pete's portfolio outperformed its benchmark in nominal terms over the last three and five years? Has Pete's portfolio outperformed or underperformed its benchmark on a risk-adjusted basis over the last five years? How are you able to draw this conclusion? Please respond to each question to receive full credit. NOSH Commentin