Investment Portfolio by allocating the budget of $100,000
1) Write an investment strategy memo, explaining how you could allocate your investment Portfolio ($100,000)
to each different investments and why.
2) In this memo, please include the results from my risk profile from Charles Schwab questionnaire. (attached)
- Investment portfolio will be evaluated based on the following three criteria:
- Diversification: You have allocated a portion of your portfolio to each of the major asset types, including
large-cap stocks, mid-cap stocks, small-cap stocks, international securities, fixed-income
securities, real estate, and liquid assets. - Risk: Your asset allocation aligns with your risk profile (conservative). Explain why you don't want to take
unnecessary risks or incurring too many trading costs. - Research: Researched each investment, and explain why you expect it to deliver a superior risk-adjusted
return. You understand the risk/return tradeoff. Your allocation strategy is appropriate for your projected time
horizon and your forecast of the future.
Sample Solution