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 Mag - Fansitions Andmations Side Show Review View Recording ( Tellme B N. A Global Allocation Use this to respond to the Global Allocation questions. Preferred Stock Too:Eximpt Investment Grade Menational Donrite Aid Cap IN Retirement Accounts: $1,695,800 Taxable Investment Accounts: $7,511,700 Schwab Checking Account: $1,217 150 Total: $10,424,650 Add-Ines loaded waccessfully A Notea Commenti Ditsability. InvestigateCase Study Spring 2023 - Read-Only - Saved to my Mac - ns Armations Slide Show Review View Recording Q) Tellme Quick Global Allocation Morningstar Equity Style Box % Morningstar Fixed Income Style Box Tocal Stock Holdings Teen Band Holding+. 28 23 41 3934 14821 Not ClassLod 73 12 12 Blend Growin 0-10 10-25 25-50 560 D-10 10-25 25-50 350 Cyclical 31.65 31.21 Basic Maths 1.46 243 Use this to respond to the Consumer Cycl 9 80 12 24 Global Allocation questions. Financial Sis 19 94 18.05 Note: these are the weights of Real Estate 2.43 each sector in the equity 43:37 allocation and benchmark, Commun Evs 3.31 3.47 respectively. Energy 522 Industrials 7.51 10 19 31.82 23 49 Consumer Def 7.61 Healthcare 13155 320 Not Classified NoMD Comments centobile Investigate Add Ing loaded successfullyCase Study Spring 2023 - Read-Only - Saved to my Mac Animations Slide Show Review View Recording @ Tell me A Global Allocation Does the equity allocation exhibit any tilts or biases within size, style, or industry? If so, list and describe one example and how you might recommend a change. What is one simple recommendation that could be made to increase the expected return of the portfolio over the long-term? In other words, are there any assets currently held that have an expected return that is either zero or negative? If so, what and how could this be corrected? Add-Ins loaded wormntly A home ( Common 6 1 0 9 PID