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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.

AssetsPortfolio APortfolio BPortfolio CPortfolio DPortfolio E
US Bonds10%40%30%5%30%
US Equities50%10%45%30%10%
EM Equities30%40%20%10%30%
EAFE Equities10%

10%

5%55%30%

Which of the above portfolio achieves investment objectives and best satisfies the specifications for each bucket?

 

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