Describe the stocks in investor portfolio

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Question 1.

Describe the stocks in an investor's portfolio when he picks from his preferred risk habitat. Give specific examples. How is this likely to impact the diversification of the portfolio?

Question 2.

How does the number of investment choices tend to affect the allocation in an employee's 4019K) plan?

Question 3.

If an investor is choosing among four investment choices (a small firm fund, a SP500 Index fund, a technology stock fund, and a bond fund) how would the final asset allocation differ between using the 1/n rule versus the conditional 1/n heuristic?

Reference no: EM133535513

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