Question
Assume you have $600,000 to invest. Show a portfolio allocation (in percentages) using mutual funds or exchange traded funds based on each of the below
Assume you have $600,000 to invest. Show a portfolio allocation (in percentages) using mutual funds or exchange traded funds based on each of the below models in building a porfolio.
A) the single index model;
B) The three-factor model; and
C) four-factor model
Hint: Use a value fund, or small cap fund, etc (there are several styles), but state the actual name(s) of the fund(s) that you are using as well as its style. Discuss as to why you prefer C to B, or B to A, or it really does not matter which model you use in terms of the resulting return and risk.
Limit your discussions to 10 lines maximum, but respond to others who may disagree with you.
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