1. Assume you have $100 000 in savings. Create a portfolio of securities worth $100 000. Decide what financial instruments you would like to use, then find their current prices in the news/online. Calculate your holdings of each security, based on current prices.

2. What objectives do you have for this portfolio? Was it chosen to maximize short-term gains, long-term stability, or some other objective?

3. Explain how each of the following economic events would affect the value of your portfolio.

a. an increase or decrease in interest rates

b. a recession

c. rapid inflation

d. a depreciation of the Canadian dollar