1. For each of the following cases, suggest the appropriate strategy or strategies;
a. John smith, 25 years old, has a risk tolerance that increases by 20 percent for each 20 percent increase in wealth. He wants to remain invested in equities always.
b. Elaine smith, has a one-million-dollar portfolio split between stocks and money market instruments in a ratio of 70/30. Her risk tolerance increases more than proportionately with changes in wealth, and she wants to speculate on a flat market or moderate bull market.
c. Joan reeves has a 2-million-dollar portfolio. She does not want portfolio value to drop below one million dollars but also does not want to incur the drag on returns of holding a large part of her portfolio in cash equivalencies.
Recently Asked Questions
- how is -27 to the power of 2/3 equal to negative 9 and not positive 9
- Cameron Balance Sheet Accounts Payable and Accruals 35 Accounts Receivable 57 Accumulated Depreciation (175) Cash 36 Common Stock 120 Fixed Assets
- How was Germany's past important to the rise of the Nazis? In particular, how did the virulent anti-Semitic ideology, which played such a prominent role in the