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Unformatted text preview: injured or disabled she would need to have savings and/or insurance to continue to pay her bills. Silvia was an active real estate investor, and has been trading for many years, her risk tolerance is higher than most people. She engaged in active online trading and invests and trades in the stock and foreign exchange market. She is a sophisticated investor and well prepared for the markets fluctuations, and whenever price drop she seize the opportunities that come in her way. However, since she lost $300,000 in the dot-com bubble between 1999-2001, she became a bit more conservative investor. Moreover, she wants to move more of her investment to securities with less fluctuation such as cash and bond as she get older. This can help insure the money is available when she needs it. I would choose a asset allocation with 70% stock, 20% bonds, and 10% cash for Silvia. She is not a very conservative investor, I chose 70% stock for her and about a million dollars cash in hand....
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This note was uploaded on 01/24/2012 for the course ECON 101 taught by Professor Newman during the Spring '11 term at Mt. SAC.
- Spring '11