Question

Municipal Bond: 25%
U.S. Treasury Bond: 25%
Preferred stock in established company: 15%
Common stock in developing firm: 5%
Savings Account: 30%

Explain, using complete sentences, if this portfolio is not diverse, minimally diverse, somewhat diverse, or extremely diverse. Why?

Is this an aggressive, conservative, or moderate portfolio? How do you know?

Describe an individual who might carry this type of portfolio. Include details such as age, occupation, family situation, investment goals.

Answer 1

okay, i'm not really an expert on finance. I read up some stuff and might be able to give you an approximate answer. But i would like to know what do you think?

Answer 2

*first

Answer 3

A diverse portfolio is well-balanced with a mix of US stocks (large and small companies), International stocks (developed and emerging markets), real estate, commodities, short and intermediate term fixed income (bonds). So according to this, i would say this is a somewhat diverse and moderate portfolio.

Answer 4

What about age? That one I am pretty much stuck on.

Answer 5

i would say 40's, married with kids probably. Again im not sure, finance isnt actually my field, i just did some reading.

Answer 6

@Elsa213