What type of risk would change exemplify

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RRSP is currently valued at $200,000. His asset allocation is 10% liquid, 40% fixed income, 50% equity. For every change in interest rates of 1%, the fixed income portion of the portfolio would change by 2%. The dividend yield on the equity portion of his portfolio is 2.75%

a) is this asset allocation appropriate?

b) if interest rates rise by 2%, what will be the change in the fixed income? what type of risk would this change exemplify?c) how much dividend income would earn on this RRSP portfolio? would you declare this income for tax purposes?

Reference no: EM13210636

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