IV. Investment Portfolio In this section you should provide an example of an Investment Portfolio. Meaning...

IV. Investment Portfolio

In this section you should provide an example of an Investment Portfolio. Meaning provide ideas for developing your own investment portfolio. Your explanation should include ideas on diversity across companies and sectors, security and speculation, and stock and bonds.

Expert Solution

The investment portfolio includes stocks, bonds, cash etc. Investors tried to earn maximum returns by mixing these securities which reflect risk tolerance and financial goals. Asset allocation will helps to avoid risk in the financial market. Owning of mutual funds considered as an instrument to reduce the risk which are essentially baskets of stocks. Investing in one category is dangerous for long term. The allocation of the securities was based on the returns from each of these.
One of the most important example for investment portfolio is Sweden Model. The excellent allocation of the money by David in Sweden model is domestic equities by 30%, Real estate funds by 20 %, Government bonds 15%, International equities by 15%, treasury securities was 15%, emerging market equities by 5%. The total sum will be 100%. Here is there is no single choice which represent an overwhelming part of the portfolio. Here there is a maintenance of solid return the risks will be reduced. This diversification in securities will reduce the risk of each company. In Sweden model, the government bonds are almost 15 percent. This shows that almost 15 percent of the securities from government bonds. This makes the trust of the company over government about the riskier securities.

Rahul Sunny answered 2 years ago

Example of non-regularity of c++ or phyton. You should provide an example to each one of...

Example of non-regularity of c++ or phyton. You should provide an example to each one of the following categories: Generality, Orthogonality, and Uniformity. That is, you will give total of three examples and explain why...

What are strengths of Single Subject Quantitative Research? Provide an example. What is the meaning of...

What are strengths of Single Subject Quantitative Research? Provide an example. What is the meaning of baseline in Single Subject Research and how is it used to determine changes

Answer the questions below, IV. Risk: In this section, you will identify the population at risk,...

Answer the questions below, IV. Risk: In this section, you will identify the population at risk, discuss incidence and prevalence, interpret data, and discuss treatment options that exist for the disease. A. Have you identified the population that is at risk of developing or contracting the disease, explaining why that specific population is at risk? B. Have you determined the current incidence and prevalence of the disease in the at-risk population, and have you supported your determination with current research?...

What considerations should the capital structure decision be based on? Provide an example of how you...

What considerations should the capital structure decision be based on? Provide an example of how you would structure a capital investment and why you choose that finance structure.

Section 2: The biological basis of the peanut allergy. In this section you should describe the...

Section 2: The biological basis of the peanut allergy. In this section you should describe the biology of the peanut allergy . This should include: What food(s) cause a reaction. Be sure to include a description of the biochemical components of the food(s) that cause a reaction. This section should also examine the genetic and epigenetic basis of the peanut allergy and include: Is the peanut allergy passed on from generation to generation? How do you know? What is the...

Through an example, developed by you, explain the meaning of the present value of the annuity...

Through an example, developed by you, explain the meaning of the present value of the annuity of a bond.

Provide a specific example that explains why you believe more states should use a top two...

Provide a specific example that explains why you believe more states should use a top two primary or maintain a closed primary for their state's direct primary elections.

Give one example to non-regularity on any programming language that you know. Your should provide an...

Give one example to non-regularity on any programming language that you know. Your should provide an example to each one of the following categories: Generality, Orthogonality, and Uniformity. That is, you will give total three examples and explain why...

Please provide an example of a Monte Carlo simulation model (and explain). Your simulation example should...

Please provide an example of a Monte Carlo simulation model (and explain). Your simulation example should be able to: Tackle a wide variety of problems using simulation Understand the seven steps of conducting a simulation Explain the advantages and disadvantages of simulation Develop random number intervals and use them to generate outcomes Understand alternative computer simulation packages available Explain the different type of simulations Explain the basic concept of simulation

Provide an example of and describe an investment asset, a consumption asset and one that might...

Provide an example of and describe an investment asset, a consumption asset and one that might be a mix of the two. Explain the impact of this classification on the valuation of a futures/forward price? What must be included as costs in one type that is not a concern the other type. What is the main difference between the two when it comes to closing out the contract?

Question