Determine the make-up of your investment portfolio

Assignment Help Financial Management

Reference no: EM131058510

Assume you have reached a point in your life where you have a budget, your cash inflows and outflows are matched to the point where your bills are getting paid; you have an emergency fund to cover contingencies; and your overall needs of your family are being met. Over the years, you have accumulated $100,000 that is currently sitting in a savings account earning very little interest. You have determined it is time to begin a structured approach to investing and need to allocate this $100,000 lump sum. You have also determined you may have $1,000 a month additional to invest. In order to establish how you will invest the $100,000, and in what terms, you must address the following:

Upon determining your answers to the above questions, determine the make-up of your investment portfolio. How would you determine what types of investments are appropriate? What specific investments would you put in your portfolio? Why? If you can average 8% annual rate of return on the $100,000, how much would you have when you turn age sixty-five?

Following the 5-step critical thinking problem solving process, determine what you would do in the situations outlined above

Reference no: EM131058510

Questions Cloud

Should the firm conduct customer segment research : B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 60 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.24 million...

Earnings and dividends per share are expected to grow : Company Z’s earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year’s dividend is $10 and the market capitalization rate is 8%, what is the current stock price? Assume next year’s dividend is $10, the market cap..

Which company using better basis of accounting and why : Which company using better basis of accounting and why? Explain your answer with appropriate rationale. Explain, are the amounts of profit calculated by both the companies correct and similar to cash in hand?

Dividend discount model-stock price : You expect Budweiser will pay dividends of 2.25 in one year, 2.50 in two years, and 2.75 in three years. From that point onwards, dividends will grow at 6% per year. Investors' required rate of return is 12%. According to the Dividend Discount Model,..

Determine the make-up of your investment portfolio : Assume you have reached a point in your life where you have a budget, your cash inflows and outflows are matched to the point where your bills are getting paid; you have an emergency fund to cover contingencies; and your overall needs of your family ..

What is the NPV of Projects and discount rates : Consider the following two mutually exclusive projects: What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%?

What defensive open market operations typically occur : If a bank buys $70 million of bonds from the Fed and also borrows $30 million from the discount window, what will be the effect on the level of checkable deposits?

Cemetery project will provide a net cash inflow : The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $88,000 for the firm during the first year, and th..

What is the projected value of the coin after eight years : Al invests $25,500 in a mint condition U S coin. He expects the coin to increase in value by 10 percent a year for the next five years. After that, he anticipates a 11 percent annual increase for the next three years. What is the projected value of t..

User Account

All Pages