Select 5 assets - either stocks or mutual funds. Provide a rationale and/or analysis for why you selected each asset. One of the 5 assets must be an equity mutual fund, one must be a bond mutual fund, and 2 of the other 3 must be individual company stocks. For these purposes, an ETF counts as a fund, since that's what the "F" in ETF stands for! You can allocate the $200,000 among the 5 assets any way you wish, including taking short positions, but you will not be able to make any adjustments to your portfolio once it is formed. To select a stock, the company must have market capitalization of at least $200 million; for funds, it must have $200 million under management. Mutual funds must be open to new, individual investors, and your allocation to a fund must conform to any initial investment minimums it may have. It should NOT be a private retirement fund, or an institutional or retirement plan class of a fund. Treasury bonds of any kind and money-market mutual funds are ineligible for selection. g) Allocate the $200,000 across these 5 assets, and purchase shares using the prices or NAVs as of March 17, 2020. Tell me how many shares of each you purchased, and since you cannot buy partial shares of individual company stocks, keep track of any stray cash (difference between amount allocated and amount invested). Do not forget to deduct front-end-load fees from your mutual fund investments, if applicable. If you fund(s) have a load, break that out as a separate line item , which essentially makes it an asset with 0% return for portfolio return calculation purposes later. h) Calculate the weight of each asset in the portfolio, as well as the equity/bond allocation percentages. i) For the funds you chose, provide or attach documentation (hand it to me) that shows: - the assets under management - the size and style category for each fund - What is the sector or industry breakdown of each equity fund's assets? Give at least the top 5 sectors/industries, but include the industries your individual company stocks are in if those are not in a fund's top 5. j) Assign your individual company stocks to their respective sector or industry group. You are free to use whichever definition set of "sector" or "industry" that you choose, as long as you provide documentation of that source and can use it to categorize the individual stocks as well as the assets of the equity fund(s).

Answer rating: 100% (QA)

To start lets select the assets 1 Equity Mutual Fund Vanguard Total Stock Market ETF VTI 2 Bond Mutual Fund PIMCO Total Return Fund PTTRX 3 Individual Company ... View the full answer