In general terms, discuss how the
following shouldbe taken into
consideration when constructing
aninvestment portfolio:
Age
Income
Debt level and assets
Marital status
Parental status
Risk tolerance
Time horizon
General economic conditions
Part 2 Tasks
Task 1 Discuss several pieces of legislation that were enacted to protect against
unethicalinvesting practices
Task 2
To illustrate your knowledge of portfolio
construction, design a portfolio based on
the following scenario:
Robert and Susan |enkins have inherited
$200,000. They are aggressive investors with a joint annual income of $1 00,000, no debt,and an additional $500,000 in assets other than the $200,000 inheritance
Design 2 separate $200,000 portfolios based on the
following scenarios:
The couple has 3 children between the agesof 9 and 17 years old, and they will use thismoney to pay for their college
education.
The couple will use the money to help fund
retirement in 35 years.
When designing your portfolios, be sure to keep thefollowing in mind:
Each portfolio should contain at least 3
common stocks, 1 American Depositary
Receipt (ADR) that you researched, and 3
bonds.
Leaving a portion of the portfolio in cash isan option if you feel that is it appropriate.
Charts and graphs should be used where
appropriate.
Portfolio models should be based on the
Jenkins’ demographic profile and time
horizon.
Be sure to include the following in your discussion?
Reasons for your investment choices
Stock and bond investment risk and returnfactors
The security market line
Beta and standard deviation
Bond duration and interest rates