If my goal is to get 100000 (MOP) within five years, how do I calculate the estimated budget? I will receive 2000 mop from my parents a year and get $5000 mop for working every month.

This individual work is planned to show students how they can reach a financial goal through investing in common stocks and other investment products. This investment plan is divided into five steps; they are 1. set up your financial goal, 2. assess your risk tolerance, 3. estimate the performance of your investment and 4. decide your asset allocation. 5. Mathematically justify your plan is workable. Step One: Financial Goal What is your financial goal? It is supposed to be a long- term goal that needs to take 5 years or more. Number of years to accomplish the goal What is the estimated budget? How much money can you save annually? Please make assumption(s) if necessary. Step Two: Risk Tolerance. Please click the following link to assess your risk tolerance. Rutgers University's Investment Risk Tolerance Quiz Your investment risk tolerance score: Necefontaine 21 1 fi . You have been Wiesbaden Step Three: Expected returns on common stocks and bonds It is assumed that historical performance can give you a guide to future return. a. Stocks: You can invest in the stock market index of a particular nation/city (E.g. Hang Seng Index (Hong Kong), S&P 500 (US), etc). Your Choice: _Hang Seng Index Average historical returns over the past_10_years: Please provide the source of data for reference: 12% A brief description of your choice and the reason for your choice: C. Other ETF Your Choice: Average historical returns over the past years: Please provide the source of data for reference: A brief description of your choice and the reason for your choice: Step Four: Asset Allocation Decision Please make a right balance of stock, bond and cash for your portfolio based on your financial goalage and risk tolerance. For instance, after considering all the factors above, you can assign 40% in stock, 40% in bond, 10% in other ETF and 10% in cash. Investment Portfolio Asset Allocation in Annual Returns (from Siep percentage three) in percentage Stock: Bond: Other ETF Cash Projected annual return on your investment portfolio Projected annual return can be calculated by the formula = Weight of stock in your portfolio * Annual return on stock + Weight of bond in your portfolio * Annual return on bond + Weight of other ETF * Annual return on other ETF + Weight of cash in your portfolio * Annual return on cash. Please explain how you make the asset allocation decision Step Five: Please justify mathematically that the projected annual return on your investment portfolio is sufficient to achieve your financial goal. That is, the future value of all your annual contribution should exceed the estimated budget of your financial goal. In case you find out that the future value is insufficient, please cut down the size of your goal or extend the time to accomplish your goal or adjust the size of annual savings. If necessary, please revise the answers in step one. Estimated budget of your financial goal (S) Projected annual return on your investment portfolio (%) Number of years to accomplish the goal (n) Annual amount of contribution (S) Calculation: Please specify any other factor(s) that we need to consider when making this investment plan. 1