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Sin Yi, Wong (Christy) Homework Assignment #2A Silvia Ho is the operational manger of one of the largest multinational industrial device companies, and she is also a real estate agent. Before she stepped into the industrial device industry five years ago, she has been in the real estate business since 1995. She was part of the multi million dollars sales award club in Re/Max and has won a number of sales award. As a operational manger, her annual income is around $150,000 and her bonus is around $20,000. Silver is now 55 years old who has never married and has no children. She owns three houses without mortgages, and rented out two that located in Laguna Niguel. For living expense, she loves to travel and spend approximately $10,000 on travelling and vacation each year. She wants to keep working and contributing because she is solely responsible for creating her own retirement savings. Therefore, she plans to retire at 65 which is 10 years from now. She is most concerned about health care, she knows if she become sick,
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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.

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