a Briefly assess Susan 's financial situation and develop a portfolio objective for her that is consistent with her needs b Evaluate the portfolio left to Susan by her father Assess its apparent objective and evaluate how well it may be doing in fulfilling this objective Use the total cost values t...

a Susans financial position is quite strong She has a regular 135000 per year job and also has inherited a portfolio worth nearly 350000 and 10000 in cash Susan has a good job and does not have to rel ...

a. Briefly assess Susan's financial situation and develop a portfolio objective for her that is consistent with

Question:

a. Briefly assess Susan's financial situation and develop a objective for her that is consistent with her needs.
b. Evaluate the left to Susan by her father. Assess its apparent objective and evaluate how well it may be doing in fulfilling this objective. Use the total cost values to describe the asset allocation scheme reflected in the Comment on the risk, return, and tax implications of this If Susan decided to invest in a security consistent with her needs-indicated in response to question a-describe the nature and mix, if any, of securities you would recommend she purchase. Discuss the risk, return, and tax implications of such a From the response to question b, compare the nature of the security inherited by Susan with what you believe would be an appropriate security for her, based on the response to question c.
e. What recommendations would you give Susan about the inherited Explain the steps she should take to adjust the to her needs.
Susan Lussier is 35 years old and employed as a tax accountant for a major oil and gas exploration company. She earns nearly $135,000 a year from her salary and from participation in the company's drilling activities. An expert on oil and gas taxation, she is not worried about job security-she is content with her income and finds it adequate to allow her to buy and do whatever she wishes. Her current philosophy is to live each day to its fullest, not concerning herself with retirement, which is too far in the future to require her current attention.
A month ago, Susan's only surviving parent, her father, was killed in a sailing accident. He had retired in La Jolla, California, 2 years earlier and had spent most of his time sailing. Prior to retirement, he managed a children's clothing manufacturing firm in South Carolina. Upon retirement he sold his stock in the firm and invested the proceeds in a security that provided him with supplemental retirement income of over $30,000 per year. In his will, he left his entire estate to Susan. The estate was structured in such a way that in addition to a few family heir looms, Susan received a security having a market value of nearly $350,000 and about $10,000 in cash.
Susan's father's contained 10 securities: 5 bonds, 2 common and 3 The following table lists the securities and their key characteristics. The common were issued by large, mature, well-known firms that had exhibited continuing patterns of payment over the past 5 years. The offered only moderate growth potential- probably no more than 2% to 3% appreciation per year. The in the were income funds invested in diversified portfolios of income-oriented and bonds.
They provided stable streams of income but offered little opportunity for capital appreciation.
Stocks
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