Please construct an investment portfolio that is appropriate for your client:

She is 60 years old and plans to retire within 5 years.

She has $4 million to invest.

She is primarily interested in creating steady income from the portfolio. Her goal is $120,000 per year.

She is also concerned about inflation and therefore wants the portfolio value and income to keep pace with inflation.

The portfolio must be diversified with stocks, bonds, cash, etc.

She is willing to assume a moderate level of risk. You must consider stock market risk and bond risk (e.g. duration):

Please calculate the beta for each holding where available.

Please calculate duration for each where available. https://www.youtube.com/watch?v=i8iqrhdRoo8

All securities must be publicly traded securities. Mutual funds and ETFs must have at least a 5 year track record. Please show actual performance of portfolio for last 5 years.

Please show the allocation and annual income for each investment position in the portfolio.

Please include the following 3 "stress tests":

10% decline in S&P 500 index, no change in interest rates

20% decline in S&P 500 index, no change in interest rates

0% decline in S&P 500 index and a 1% increase in interest rates

Please calculate the annual expenses in the portfolio (e.g. mutual funds and exchange traded funds)

Here are a few helpful suggestions:

Performance (Stress Tests) need to include a securities level analysis. For example, each stock (or fund) should be tested against its' respective Beta.

If you are including bond funds in your portfolio, you can easily get the Duration on the fund managers website.

If you are using CDs in the portfolio, you can assume the Duration is equal to the maturity date of the CD.

Remember, that your client wants the value of the portfolio to keep pace with inflation. This is why you should only use securities that have a track record of at least 5 years. You can assume that the future performance of the portfolio will be equal to the past performance.

Part II. Molar Enthalpy of Dissolution of a Salt Mass of water 75.41g Mass of NH.NO, 3.02 19.2"CInstruction Chart of Accounts General Journal Instruction Chart of Accounts S 126 Accounts Receivable-Mr.Potts 522 Depreciation Expense 127 Accounts Receivable-Chad Thomas 523 Delivery Expense 128 Accounts Receivable-Andrew Warren 524 Repairs Expense 129 Allowance for Doubtful Accounts 531 Rent Expense 131 Interest Receivable 533 Insurance Expense 132 Notes Receivable 534 Supplies Expense 141 Inventory 536 Credit Card Expense 145 Supplies 537 Cash Short and Over it do 151 Prepaid Insurance 538 Bad Debt Expense 181 Land 539 Miscellaneous Expense 191 Equipment 710 Interest ExpenseInstruction Chart of Accounts Us LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 DividendsYear 2010 Year 2011 Year 2012 Price Quantity Price Quantity Price Quantity Chips $4 100 $4 110 $5 80 Dips $5 50 $4 40 $3 50 Sodas $3 50 $5 60 $5 70 Question 1. GDP [10 Points in Total] a. (3 points) Compute nominal GDP in 2010, 2011, and 2012. [Show your computation work] b. (3 points) Compute real GDP in 2010, 2011, and 2012 (base year method). [Show your computation work] c. (2 points) Compute GDP deflator in 2010, 2011, and 2012. [Show your computation work] d. (2 points) Compute growth rates of nominal GDP and real GDP from 2010 to 2011 and from 2011 to 2012. [Show your computation work] Question 2. Inflation [7 Points in Total] a. (3 points) Compute cost of CPI basket in 2010, 2011, and 2012. [Show your computation work] b. (2 points) Compute CPI in 2010, 2011, and 2012. [Show your computation work] c. (2 point) Compute inflation rates (based on CPI) from 2010 to 2011 and from 2011 to 2012. [Show your computation work] Question 3. Business Cycle [3 Points in Total] a. (2 points) Based on your answers on Question 1 and 2 above, did Aggieland experience an expansion or a recession from 2010 to 2011? How about from 2011 to 2012? Was it at peak or trough or neither in year 2011? b. (1 point) From 2010 to 2011, did Aggieland experience an inflation or deflation? How about from 2011 to 2012?1. For the two parts of this question, state the appropriate distribution to use and calculate the mean, variance and the probabilities indicated: In an intermediate level economics class there are 16 students. Nine of these are economics majors. For class discussion purposes five students are randomly selected. Distribution = 1. For the two parts of this question, state the appropriate distribution to use and calculate the mean, variance and the probabilities indicated: In an intermediate level economics class there are 16 students. Nine of these are economics majors. For class discussion purposes five students are randomly selected. Mean # of econ majors selected from 5 students = 1. For the two parts of this question, state the appropriate distribution to use and calculate the mean, variance and the probabilities indicated: In an intermediate level economics class there are 16 students. Nine of these are economics majors. For class discussion purposes five students are randomly selected. Variance of # of econ majors out of 9 students =