Managing Your Investment Assets Asset allocation is the decision of how you divide your investment...

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Managing Your Investment Assets Asset allocation is the decision of how you divide your investment portfolio between various assets. Typicat asset categories include cash or shortterm securities (Treasury bils, CDs, etc.), bonds (municipal bonds, corporate bonds, etc.), and equity funds or equities (stocks, stock mutual funds, ete.). The following table blustrates several model portfolios that you can use as a basis for your own investment plan, depending on such factors as your time horizon, risk tolerance, and investment philosophy. Suppose that Tracy is using an investment program to save money for a down payment on a condominium. Therefore, she will rieed to use her investment money within the next 3 years. Athough Tracy doesn't mind taking on a small amount of risk, her primary investment goal is the preservation of her imvestment capital, Tracy is investor with a time horizon of Using the model portfolios provided, what is thi ition for Tracy's portfolio, based on her time horizon and investment philosophy? If no funds are recommended to be allocated toward an asset, enter "o" into the numeric entry box for that asset. In general, if you have a longer time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in If you are investing for a shorter time horizon, or if you have a more conservative investment philosophy, then you should invest a greater percentage of your portfolio in Suppose that Tracy is using an investment program to save money for a down payment on a condominium. Therefore, she will need to use her investment money within the next 3 years. Although Tracy doesn't mind taking on a small amount of risk, her primary investment goal is the preservation of her investment capital. Tracy is. investor with a time horizon of Using the model portfolios provided, what is the ideal asset allocation for Tracy's portfolio, based on h nvestment philosophy? If no funds are recommended to be allocated toward an asset, enter "O" into the numeric entry box for that asset. In peneral, if you have a longer time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in If you are itivesting for a shorter time horizon, or if you have a more conservative investment philosophy, then you should invest a greater percentage of your portfolio in If no funds are recommended to be allocated toward an asset, enter " 0 " into the numeric entry box for that asset. In general, if yo ger time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in. If you are investing toi me horizon, or if you have a more conservative investment philosophy, then you should invest a greater percentage of your portfolio in

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