Asset allocation is the proportion of your overall investment portfollo that you have invested in various categories of assets, Typical asset categories include, for example, equities (stocks or stock mutual funds), bonds (or bond funds), and cash (or cash equivalents such as Treasury bills). The following table illustrates several model portfolios that you can use as a basis for your own investment plan, depending on various factors, such as your time horizon, your risk tolerance, and your investment phillosophy: Suppose that Sunita is using an investment program to save money for a down payment on a condominlum. Therefore, she will need to use her Investment money within the next three years. Although Sunita doesn't mind taking on a small amount of risk, her primary investment goal is the preservation of her investment capital. Sunita is investor with a time horizon of Using the asset allocation provided, what is the ik n for Sunita's portfolio, based on her time horizon and investment philosophy? If your answer is zero enter " 0 ". RecommendedassetallocationforSunitasportfolio:Cash:Bonds:Equities: In general, if you have a longer time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in you are investing for a shorter time horizon, or if you have a more conservative investment philosophy, then you should invest a greater percentage of your portfollo in preservation of her investment capital. Sunita is Investor with a time horizon of Using the asset allocation provided, what is the ideal asset allocation for Sunita's portfolio, based on he vestment philosophy? If your answer is zero enter " 0 ". In general, if you have a longer time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in But if you are investing for a shorter time horizon, or if you have a more conservative investment philosopty, then you should invest a greater percentage of your portfolio in In general, if you have a longer time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in But if you are investing for a shorter time horizon, or if you have a more conservative investment philosophy, then you should invest a greater percentage of your portfolio in Recommended asset allocation for Sunita's portfolio: %% In general, if you ler time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in But if you are investin tr time horizon, of if you have a more conservative investment philiosophy, then you should invent a greater percentage of your portfolio in
