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1.Assume you have $100,000 in savings. portfolio of securities worth $100,000.Decide what financial instruments you would like to use, then find their current prices inthe

1.Assume you have $100,000 in savings. portfolio of securities worth $100,000.Decide what financial instruments you would like to use, then find their current prices inthe newspaper(/online-- provide the backup used). 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-termgains, long-term stability, or some other objective?

3.Explain how each of the following economic events would affect the value of yourportfolio:

a. an increase or decrease in interest rates

b. a recession

c. rapid inflation

d. a depreciation of the U.S. dollar

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