Question
Congratulations! You have been hired as a Financial Analyst by TK Enterprises. As an ambitious new financial analyst, you want to make a good impression
Congratulations! You have been hired as a Financial Analyst by TK Enterprises. As an ambitious new financial analyst, you want to make a good impression on the firm's management and your direct supervisor. As your first assignment, you have been asked to create a diversified portfolio. Since the firm believes in collaboration, you will work with another financial analyst in the firm. The following are guidelines and requirements that will need to be met:
Assume an initial investment of $100,000.
The investor: Ms. Greta Roadie plans to retire in 25 years and is willing to accept moderate risk for a portion of her investment. She is requiring a return of 8% for moderately risky products, however as any investor, she requires a higher return as risk increases.
Research various instruments that are currently available to investors today. What would you select to insure a fully diversified portfolio? Be sure to spread the risk and include a full spectrum of products.
Rubric: Portfolio is fully diversified including the following investment instruments: Stocks - large & small companies, Long-term corporate bonds, Long-term US Government Bonds, Treasury bills
Report is well organized; each instrument is fully explained; Justifications are representative of mathematical results; mathematical results are included and correct (Ill cashapp 30 whoever answers this please!!!)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started