When you first graduated from school, you began setting aside a portion of your paycheck for investing. Because you were young, your investments were heavily weighted toward growth. In particular, you invested heavily in small cap and technology stocks. Three years ago you got married and yesterday you found out that twin babies were on the way. The thought of now having to help support two children has caused you to reevaluate your investment strategy.
You conclude that you want an asset allocation that is 50% capital preservation, 40% conservative growth, and 10% aggressive growth. You want the capital preservation portion of your portfolio to be liquid in case you need funds immediately. Your total portfolio is $100,000. Assemble a portfolio that meets these objectives by selecting the investments below. Your choices should add up to $100,000. Select all that apply.
| a. $25,000 money market account | | |
| b. $20,000 small cap stocks | | |
| c. $50,000 retirement annuity | | |
| d. $10,000 foreign stocks | | |
| e. $40,000 blue chip stocks | | |
| f. $25,000 savings account | | |
| g. $20,000 technology stocks | | |
| h. $10,000 blue chip stocks | | |
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