Question
Use the 4 assets to create a three bucket portfolio for your investors. Your investor wishes to generate between 5% and 6% annual nominal return
Use the 4 assets to create a three bucket portfolio for your investors. Your investor wishes to generate between 5% and 6% annual nominal return from the portfolio. The investor wishes to hold 30% in Safe and 50% in Market buckets. The risky bucket should hold 20% of the allocation.
Assets | Portfolio A | Portfolio B | Portfolio C | Portfolio D | Portfolio E |
US Bonds | 10% | 40% | 30% | 5% | 30% |
US Equities | 50% | 10% | 45% | 30% | 10% |
EM Equities | 30% | 40% | 20% | 10% | 30% |
EAFE Equities | 10% | 10% | 5% | 55% | 30% |
Which of the above portfolio achieves investment objectives and best satisfies the specifications for each bucket?
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Statistical Techniques In Business And Economics
Authors: Douglas Lind, William Marchal
16th Edition
78020522, 978-0078020520
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