Asset Allocation
Assume you are 45 years old, want to retire in 20 years, and currently have an investment portfolio valued at $240,000 invested in technology stocks. After talking with a financial advisor, you feel you have “too many eggs in one basket” and need to diversify your investments. Based on this information, use the asset allocation method described in this chapter and the table below to diversify your investment portfolio. Then in a short paragraph explain why you chose these investments.
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Table 1.0 Allocation of my portfolio.
Investment Alternative
Percentage in this Category
Stocks issued by large corporations
25%
Stocks issued by Medium-Sized corporations
20%
Stocks issued by small, rapidly growing companies
25%
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