Within the investment portfolio, the allocation of money for shares will be invested in about 20 stocks such that the portfolio is well diversified. Marion is considering two stocks as described below.

You work as a Financial Planning Adviser and have been asked to assist with two new clients. You have received background information on each client (see below). Client Name Marion Fiona and Waleed Age 65 35 and 33 Status Single, owner of large house Married, joint owners of small apartment Dependents Nil One child (age 2) Occupation Retired musician Pharmacist (Fiona) and Chemical Engineer (Waleed) Net Income AUD75,000 pa from AUD150,000 pa (Fiona) and AUD125,000 (after super and after tax) superannuateon pa (Waleed) from salary Expenses AUD65,000 pa AUD145,000 pa including the bank loan (living and financial) Major assets Cash at bank AUD10,000 Cash at bank AUD25,000 Superannuateon AUD600,000 Superannuateon AUD350,000 House AUD2.5 million Apartment AUDO.8 million Major liabilities Nil Bank loan for the apartment AUDO.6 million (interest only loan) Major financial goals Continue self funded retirement Purchase a house in the future You have had an introductory meeting with each new client to obtain a better understanding of their circumstances, financial goals and risk preferences. Below are some notes from those meetings