List your personal characteristics, and then state your investment objectives in light of them. Use these objectives as a basis for developing your portfolio objectives and policies.
Assume that you plan to create a portfolio aimed at achieving your stated objectives.
The portfolio will be constructed by allocating your money to any of the following asset classes: common stock, bonds, foreign securities, and short-term securities.
a. Determine and justify an asset allocation to these four classes in light of your stated portfolio objectives and policies.
b. Describe the types of investments you would choose for each of the asset classes.
c. Assume that after making the asset allocations specified in part a, you receive a sizable inheritance that causes your portfolio objectives to change to a much more aggressive posture. Describe the changes that you would make in your asset allocations.
d. Describe other asset classes you might consider when developing your asset allocation scheme.