Question 1: 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.

Question 2: Answer all questions below.

General Balance Sheet Questions If the account is a CURRENT ASSET mark as TRUE: True Inventory False True Temporary Investments False True False Equipment True False Dividends True False Accounts Receivable Long-term Investments False True False Prepaid Insurance True Rent Expense False .True Supplies False True False Cash Which reflects Current Assets in the proper order: Equipment (net) on the balance sheet is the Equipment account balance minus In the Stockholders' Equity section of a Balance Sheet which is listed firstreceived it Clear my choice Question 9 Toyota, a Japanese firm, produces a $25,000 car in its plant located in South Carolina, U.S. How does is factor into GDP? Not yet Irawend Select one Points out of O a. $25,000 is added to Japan's GDP I Rag quilton O b. Nothing is added to either country's GOP O c. $25,000 is added to both U.S GDP and Japan's GDP O d. $25 000 is added to U.S. GDP Quantien 10 The supply and demand model shows us that Not you Select one: Points out of 1.00 O a if there is a surplus in a market, buyers will change their preferences and decrease their demand until the surplus is gone. F Rag question O b. once a market reaches equilibrium, the market price will stay the same, even if supply and demand change in the future. O c profit seeking firms will push the price so high that eventually nobody will buy the good and the market will dissolve O d. if there is a shortage in a market, competition will make the price rise and the shortage will be eliminatedFirewood received by a music teacher In return for violin lessons would not be included in GDP O True O False D Question 21 1 pts The label "frictional unemployment" is used to describe individuals who are out of work while they are changing jobs. True False D Question 22 1 pts Net foreign factor income - +25 means that US resources earned more (25) in other countries than others (foreigners) earned in the US. True OFabe D Question 23 1 pts Natural Rate of Unemployment usually means zero unemployment, i.e. no frictional, structural or cyclical unemployment. TrueQUESTION 20 Discretionary fiscal policy refers to O A. Policy undertaken at the sole discretion of Congress which cannot be vetoed by the President. OB. Policy conducted discretely as to not attract undue attention, O C. Policy that takes effect automatically when an economy slides into a recession. O D. Policy in which Congress and the President take explicit legislative action to change government spending or taxes.Question 19 1 pts Use the following hypothetical data in TABLE 7 to calculate GNP. Note: Exports are negative 267, that is, there is a minus sign before 267. Enter your answer as a number only. That is, don't put any comma or period signs. TABLE 7 Billions of dollars Net Exports -267 Dividends 50 Capital Consumption Allowance 203 Government expenditures 377 Rents 260 Value of Intermediate goods 300 Indirect business taxes 155 Wages 900 Corporate Income taxes 95 Interest 160 Proprietor's income 132 Personal Consumption expenditure 1600 Undistributed corporate profits 85 Gross private domestic investment 330 NFFI 0