Floro is a young energetic lady aged 23, she is in excellent health, she lives a simple but active lifestyle, and currently childless. Through her boyfriend’s advice who is a Finance guru, she has developed interest in investment related activities and has interest in investing K70, 000 resources given to her upon her graduation from Mulungushi University as a present from her boyfriend. She doesn’t want her boyfriend to know about these plans and decides to seek for advice from you as an investment scholar. She is currently unemployed but is actively looking for full-time employment which is promising to come by any moment. She is also looking forward to starting a family in the near future. Currently, the following assets are available for use in building an appropriate portfolio:

a. What comprehensive Investment policy statement would you formulate for Floro? It should be inclusive of important Objectives and constraints. 

b. Given the information, what long term asset allocation (Minimum Three Assets) would you provide for the investment Policy statement and what assumptions are you putting in place to justify its usage.

Answer rating: 100% (QA)

Answer to the above question Part a Investments are done with the motive to earn income There are va... View the full answer