Your group represents an investment advisory firm that has a 35-year-old single mother of an eight-year-

old child. She approaches you for advice and after interviewing her you obtained the following:

i. She has savings of $30,000 in a money market account at a local credit union where she receives

direct deposit of her income.

ii. Having completed the MS in Marketing in May 2018, she has $25,000 in student loans at an interest

rate of 6%.

iii. She bought a condo in January 2010 for $125,000 with 10% down and a 30-year fixed-rate mortgage

at 5%. She makes the payments as required. She estimates the current value at about $185,000.

iv. After completing her master's she bought a new car for approximately $30,000 with a 5-year 3%

loan from the credit union.

v. She has a mid-level managerial job in a large private supermarket chain, where she has been

working since 2008. She was promoted to her current post in 2018 after completing her master's.

vi. She has shares currently worth about $35,000 in the company. A portion of these were purchased by

her through the Share Purchase Plan and the balance has been granted to her under the Profit Plan

and are fully vested.

vii. Separate and apart from the shares in the company previously mentioned, her 401k is currently

$60,000 of the company's shares. While her employer allows her to invest her 401k in up to five of

the large U.S. mutual funds, she has not taken the time to do so. Her employer will match a

maximum of 5% of her salary if she contributes to her 401k. They will not contribute unless she

contributes, but she is not required to do so. She does not consistently take maximum advantage of

her employer's offer.

viii. Her current monthly expenses (food, utilities, mortgage, car payment, student loan payment, child's

education and care, etc.) does not leave much from her take-home pay of $4,000.

ix. She does not wish to engage in "bricks and mortar" type real estate investment, but would consider

exposure to real estate otherwise. Likewise, after assessing her risk tolerance you concluded that she

is concerned about investing in individual stocks, although she has not completely ruled it out.

Considering the above and making any reasonable and justifiable assumptions, develop an appropriate

overall investment strategy for your client. You should select a particular investment strategy that is

based on a diversified portfolio of investments for the client and justify why and how you selected

the particular investments. Your discussion of the investments should include an analysis of past

performance over a reasonable time period, the pros and cons, and the risks and rewards of each

investment. Finally, provide the client with a projection of the value of her overall portfolio over the

next five years. The basis of your projection must be clear and logical.