Discuss investment risk versus investment return tradeoff

Assignment Help Finance Basics

Reference no: EM133412377 , Length: 3 Pages

Assignment:

You will drop this assignment into Canvas with your name and analysis and recommendations by the START of the class. Please number your answers with the same numbers used for each question.

1. What is the first of your two personal financial planning goals where proper investment planning will have the greatest impact. What is your time horizon of the first of your two personal financial planning goals? What is your investment planning risk tolerance for this goal? Discuss the investment risk versus the investment return tradeoff for this goal. What? Specific asset allocation, for example 60% stocks and 40% bonds will you use to reach this goal? Why? Please show your analysis.

2. What is the second of your two personal financial planning goals where proper investment planning will have the greatest impact. What is your time horizon of the second of your two personal financial planning goals? What is your investment planning risk tolerance for this goal? Discuss the investment risk versus the investment return tradeoff for this goal. What specific asset allocation, for example 60% stocks and 40% bonds will you use to reach this goal? Why? Please show your analysis.

3. Now that you have decided on your specific asset allocations in questions 1 and 2, what specifically do you intend to buy for the part of your investments that you will allocate to stocks? Why? If you do not have any specific allocation to stocks in questions 1 and 2, what specifically, would you buy if you were allocating part of your investments to stocks? Do you intend to purchase stock index funds or ETFs for any part of the portfolio? Why or why not? If you do intend to purchase stock index funds or ETFs, which specific stock index or indexes will you use? Why?

4. Now that you have decided on your specific asset allocations in questions 1 and 2, what specifically do you intend to buy for the part of your investments that you will allocate to bonds? Why? If you do not have any specific allocation to bonds in questions 1 and 2, what specifically, would you buy if you were allocating part of your investments to bonds? Do you intend to purchase bond index funds or ETFs for any part of the portfolio? Why or why not? If you do intend to purchase bond index funds or ETFs, which specific bond index or indexes will you use? Why?

Answers should be thorough enough to completely answer the questions but no longer than three typed pages.

Reference no: EM133412377

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