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Now it's time to help Marc and Julian allocate the investments for their portfolio. This
section is worth 28 points.
1. Marc and Julian have $30,000 they would like to invest. Based on all you know
about their investment priorities, interests, and tolerance for risk, assign each type of
investment a percentage of the $30,000. Your allocations should add up to 100%. (16
points)

Average annual rate of Recommended allocation
Type of investment return
(percentage)
Cash (includes savings
accounts and CDs) 0.5%
3%
High-risk stocks and bonds 8 - 10%
32%
Low-risk stocks and bonds 3 - 4%
9%
Mutual funds
5 - 7%
17%
Real estate
6 - 8%
24%
Retirement
4 - 6%
15%

2. Write a paragraph (three to five sentences) to explain how your allocation of Marc
and Julian's portfolio matches their investment goals and priorities. (12 points)|

Respuesta :

Parrain

Based on Marc and Jean's investment priorities and risk tolerance, we will assign most of their portfolio to High-risk stocks and real estate.

How should Marc and Jean's portfolio be allocated?

Marc and Jean will be assumed to be young which likely means that they have a high risk tolerance, and prioritize growth overtime.

We will therefore apportion 32% to High-risk stocks and bonds and 24% to real estate. This is because these are risky investments that can bring in high returns overtime.

We will also apportion 17% to Mutual funds and 15% to retirement for diversification purposes.

Cash will be apportioned 3% and low risk stocks and bonds will get 9%. This safety net ensures that the portfolio will have less risk in total but is small enough that they don't interefere with the general goals of the portfolio.

Find out more on portfolio allocation at https://brainly.com/question/26489528.

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