Assume you are 45 years old, want to retire in 20 years, and currently have an investment portfolio valued at $240,000 invested in technology stocks. After talking with a financial advisor, you feel you have âtoo many eggs in one basketâ and need to diversify your investments. Based on this information, use the asset allocation method described in this chapter and the table below to diversify your investment portfolio. Then in a short paragraph explain why you chose these investments. (25 points)
Investment Alternative
Percentage You Would Like in This Category
Stocks issued by large corporations (large cap)
Stocks issued by medium-sized corporations (midcap)
Stocks issued by small, rapidly growing companies (small cap)
Foreign stocks
Bonds
Cash
Other investments (specify type)
100%
Assume you are 45 years old, want to retire in 20 years, and currently have an investment portfolio valued at $240,000 invested in technology stocks. After talking with a financial advisor, you feel you have âtoo many eggs in one basketâ and need to diversify your investments. Based on this information, use the asset allocation method described in this chapter and the table below to diversify your investment portfolio. Then in a short paragraph explain why you chose these investments. (25 points)
Investment Alternative | Percentage You Would Like in This Category |
Stocks issued by large corporations (large cap) | |
Stocks issued by medium-sized corporations (midcap) | |
Stocks issued by small, rapidly growing companies (small cap) | |
Foreign stocks | |
Bonds | |
Cash | |
Other investments (specify type) | |
100% |
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