Year (: 1L Vi VIL Based upon your specific investment objective, build a diversified portfolio containing all the provided asset classes. Within each asset class, you will include a specific secunty, (stock, bond. etc), an ETF and a mutual fund. You will start with a 51,000,000 1 cash and this cash is to be fully allocated among the asset classes while keeping in mind your risk tolerances and return expectations. You will define the portfolio asset allocation (strategic asset allocation (SAA)) by percentage across the investment categories. International (non-US) investment exposure must be included as an investment category. Explain in narrative form to the investor why you added the specific investment securitics that you selected. For example, why did you choose a high dividend stock, or a value mutual fund, or a stock with a high P/E. Calculate the weighted Expected Return of your new portfolio based on the percentage assct allocation. Based on historical trend, is it enough to accomplish your objective? Calculate the expected annual income. Does this meet your objective? Calculate the weighted Standard Deviation of your portfolio. Is this an appropriate level of risk for your client and their objective, and if not, do you need to decrease or increase this risk? Eeport 1if your first attempt has the potental to meet your objectives in terms of income, growth of principal and nsk. If not, what changes need to be made? Bonds were included in the portfolio with the intention of potential reducing the overall risk of the portfolio. Let's prove this \"risk reduction by reviewing the correlation of equity returns to fixed income returns. Thus, calculate the 5-vear correlation of your of vour stocks to the return of the 10 year Treasury Note. Does vour correlation provide risk reduction? SAA Asset Class Expected Return Income Yeild Standard Deviation Large Cap Stocks 25.00% 250,000 8.00% 3.00% 15.00% Small Cap Stocks 25.00% 250,000 10.00% 3.50% 18.00% Mutual Funds 15.00% 150,000 7.00% 7.00% 12.00% International Stocks 10.00% 100,000 12.00% 4.00% 21.00% Bonds 9.00% 90,000 4.00% 4.00% 3.00% Treasury-Protected Securities 7.00% 70,000 3.00% 3.00% 4.00% Emerging- Market Securities 5.00% 50,000 15.00% 2.50% 26.00% Cash 4% 40,000 2.00% 4.00% 1.00% Total 100% 1,000,000