Investment Portfolio

1) Describe the importance of the initial investment plan and explain the importance of updating the plan.

2) Lists events that might require the investment plan to be amended and briefly explain why each event may require the investment plan to be amended.

3) Explain why other instruments and nonfinancial assets would or would not enhance the portfolio's performance if these instruments had been eligible investments and analyze the effects of the investments and nonfinancial assets used within a portfolio.

4) Explain what is learned about investing and explain how this knowledge might influence one's actual future investing decisions.

THE ABOVE QUESTIONS ARE FOR A SCENARIO OF A PERSONAL INVESTMENT PLAN (SIMULATION) WHERE YOU BUY SECURITIES AS A PORTFOLIO AND MINIMIZE RISK BY DIVERSIFICATION IN ASSET ALLOCATION eg lets say 10% Liquid Assets such as money market mutual funds to meet finanancial emergencies, 30% fixed income securities like bonds to generate income and 60% stock to generate growth. Just provide a general overview of the answers as a guide line and if possible be specific. thanks