Question
Background You are provided with the following 3 portfolios: Asset Class Investment Portfolio 1 Investment Portfolio 2 Investment Portfolio 3 Cash 60% 5% 5% Fixed
Background
You are provided with the following 3 portfolios:
Asset Class
Investment Portfolio 1
Investment Portfolio 2
Investment Portfolio 3
Cash
60%
5%
5%
Fixed Interest
25%
30%
0%
Shares
15%
35%
75%
Property
0%
30%
20%
Total
100%
100%
100%
When deciding on what is an appropriate asset allocation, investors often consider the following:
- ability to deal with short term volatility
- liquidity
- concern about effects of inflation
- potential tax effectiveness
- capital growth
- capital stability
- Which of the six investor considerations listed above do you believe would be very important for an investor who chooses to invest in Investment Portfolio 1?
- Which of the six investor considerations listed above do you believe would be very important for an investor who chooses to invest in Investment Portfolio 2?
- Which of the six investor considerations listed above do you believe would be very important for an investor who chooses to invest in Investment Portfolio 3?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
