rajesh 35 year old salried individual wishes to invest rs 15 lakh in different investment avenues. he plans to invest for the education of his two childern aged 5 and 8 years old, retirement and contingenccy. assuming the role of portfolio management consult design a suitable portfolio for rajesh if A) he is willing to take moderate risk for his investment. B) he is a risk netural investor.

rajesh 35 year old salried individual wishes to invest rs 15 lakh in different investment avenues. he plans to invest for the education of his two childern aged 5 and 8 years old, retirement and contingenccy. assuming the role of portfolio management consult design a suitable portfolio for rajesh if A) he is willing to take moderate risk for his investment. B) he is a risk netural investor.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 2FPC

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Rajesh, 35-year-old salaried individual wishes to invest Rs. 15 lakhs in different investment avenues. He plans to invest for the education of his two children aged 5 and 8 years old, retirement and contingency. Assuming the role of a Portfolio Management Consultant design a suitable portfolio for Rajesh if –a. He is willing to take moderate risk for his investments. b. He is a risk neutral investor.
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Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is a…
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is…
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is a…
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…