"Managing Ratios and Ethical Accounting" Please respond to the following: Complete the investment allocation questionnaire, located at http://web.archive.org/web/20050210200843/http://www.cnb1.com/invallocmdl.htm.

Add up your total points to determine the type of investment fund that would be appropriate for you.

Imagine you were given a $1,000,000 inheritance. Based on your results from the questionnaire, explain two (2) types of investment funds that you would use to secure the inheritance money. Justify your response.

The first step to planning your investment strategy is understanding how your time horizon, investment objectives, and reaction to risk can affect your ability to reach your goals. The Investment Allocation Model helps us work with you to determine the most appropriate investment strategy. check the answer that best reflects your situation. Planning to Succeed The first step to planning your investment strategy is understanding how your time horizon, investment objectives, and reaction to risk can affect your ability to reach your goals. The Investment Allocation Model helps us work with you to determine the most appropriate investment strategy for you. As you read these questions, check the answer that best reflects your situation or reaction.

My primary financial goal is:

Retirement or retirement planning- X

Financing my childrens education

Preparing for future family obligations

Saving for vacations

Planning for a new home

Other_____________________________________________

Timing How many years are there between now and the time youd like to achieve your primary financial goal?

10 years or more (5) -X

5 to 10 years (3)

Less than 5 years (1)

How old are you now?

21 to 35 (5)

36 to 45 (4)

46 to 55 (3)-X

56 and over (2)

Investment Objectives When choosing an investment, what is the most important factor you would consider?

The long-term growth of my assets. (8)- X

A combination of some current income and the long-term growth of my assets. (6)

Its ability to provide a high level of current monthly income. (4)

Primarily preserving my principal investment. (2)

Five years from now, what do you think the value of your portfolio will be?

Substantially increased in value from where it is today. (8)

Moderately increased in value from where it is today. (6)-X

About the same as it is today. (4)

It doesnt matter to me, as Im more concerned about the current income my portfolio will provide. (2)

How important to you is receiving current income from your portfolio?

Not important at all. (8)- X

As important as growing my assets over the long-term. (6)

Somewhat important. (4)

My number one priority. (2)

Reaction to Risk How would you invest an unexpected windfall of $50,000?

I would diversify my money among investments having the highest possible growth opportunities, despite the risks involved. (12)

In one growth-oriented, tax-free investment. (10)-X

In investments that provide current income and growth opportunities. (8)

In investments that offer some current income and are relatively safe. (4)

Which statement describes your reaction to a decline of 15% of your portfolio in one year?

No reaction really. I invest for the long term. (12)

If my income remained the same, it would not bother me very much. (10)-X

Even though I invest for the long term, Id watch my portfolio closer in the second year, and then make a decision whether to make any adjustments. (8)

Id react strongly. I dont like to see any fluctuation in my portfolio. (4)

Which one of these investments are you most comfortable owning?

Stocks of emerging growth companies. (12)-X

Stocks of traditional blue-chip companies. (10)

Bonds corporate or government securities. (8)

Certificates of deposit. (4)

To what degree are you interested in pursuing investments outside the U.S.?

Extremely interested and comfortable with foreign investments. (12)

Id need to know more before I make up my mind. (6)

Uneasy. Perhaps would consider only a small percentage of my portfolio in foreign investments. (4) -X

Not interested. Information on foreign companies is unreliable and the political and currency risks would worry me. (1)

What is your reaction to this statement? Investments described as having higher returns often have higher risks associated with them. I am willing to accept a higher degree of risk in order to achieve higher returns in the long run.

I agree. (12)-X

No real reaction. (6)

I disagree. It doesnt describe my investment philosophy. (2)

Find your Score To find your score, add up the numbers that are in parentheses after the answers you checked. Then locate your score within the model portfolios below. If your score falls within two portfolios, the program will illustrate both models so that you can determine which meets your priorities best. The results of you Planner will help you and your investment officer focus on your priorities. If your total score is between:

X=78 to 94 Maximum Growth

66 to 82 Growth with Moderate Income

54 to 70 Growth and Income

42 to 58 Income with Moderate Growth

30 to 46 Income

27 to 38 Stable - Capital Preservation