50.1K

Verified Solution

Link Copied!

Instructions and steps for the assignment Purpose The purpose is to give you a better understanding of investment strategies and portfolio management. You will also learn a variety of financial instruments and their risks and rewards as they apply to investment management The Scenario You and your group have started a financial planning consultancy partnership (give it a name of your choosing). Your first client was a 24-year-old man who just got his first job as a government worker. His job pays very well and he spends approximately 70% on average of his income every month. He has inherited $1,000,000 that he wants to start with and he plans to invest $20,000 more annually for the next 10 years. His goal for investing is to have an early retirement in his 50's, you evaluate his risk tolerance as (moderate) and you also identify that he has no past experience or knowledge on investing. The Requirement Write a 3-5 page report to your first client (give him a name). The goal of the report is to explain and propose a plan for the following portfolio design aspects: Asset Classes and Allocation: explain the various available asset classes to your client and propose an appropriate asset allocation that will break down your client's portfolio between major asset classes (based on factors such as client goals, investment strategy, risk tolerance etc.) Security Selection: propose a set of at least 5 securities under each asset class. Risk Consideration: Define the risk categories and the extent of risk considered in the investment plan. Returns: provide an estimation (based on historical data) on the expected performance of the proposed portfolio over the long run

Answer & Explanation Solved by verified expert

See Answer