Question
You are the manager of an investment fund. Your job is to advise clients on what portfolio best suits their needs, given their characteristics. You
You are the manager of an investment fund. Your job is to advise clients on what portfolio best suits their needs, given their characteristics. You have four different client types. I. A 23 year old woman (Vanessa), who has just begun a long and hopefully successful career as a nurse. II. A couple (Eddy and Eliza), both 41 years of age and have two young children. Both earn high incomes and wish to retire at the age of 60. III. 64 year old Jurgen, who is hoping to retire from work over the next 12 months after COVID-19 stripped away the biggest achievement of his career. IV. The retired Fergie, who at the age of 75 has been retired for a period of 10 years. You can choose to offer any one of the following four portfolios to each of your clients. Portfolio Assets Allocation Alpha 90% shares, 5% property, 5% fixed interest (cash) Beta 60% shares, 20% property, 20% fixed interest (cash) Gamma 20% shares, 30% property, 50% fixed interest (cash) Delta 0% shares, 30% property, 70% fixed interest (cash)
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