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Scenario: You are 4 0 years old. Your investment portfolio currently consists of: ( 1 ) a savings account, with a $ 1 6 ,

Scenario: You are 40 years old. Your investment portfolio currently consists of: (1) a savings account, with a $16,000 balance, (2) certificates of deposit (CDs) worth $20,000, and (3) an investment portfolio consisting of 40% bonds, 40% equities, and 20% cash and cash equivalents. Your bonds are thirty-year U.S. government bonds, while your equities are made up solely of your employers stock. Your cash holdings consist of your savings account and CDs. Your employers stock paid a 1% dividend and its market value has increased 10% over the last year. The bonds have paid 3.0% interest. The rate of inflation is 2.5%. Your investment goals are mainly focused on retirement, and you have no large purchases planned in the short term.
The value of your current investment portfolio is_______. This consists of _______ in cash and cash equivalents, ________ in bonds, and _______ in equities.

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