Question

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

Describe the risk factor of this portfolio. 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

This investment seems very diverse. It is divided into 5 different categories with no more than 25% in any one category.

It is a very conservative approach. 95% of the investments are in very stable account. Only 5% is devoted to a developing firm.

This investment plan would be for an investor who is very fearful of losing money. They would most likely be close to retirement age, in a situation where they just want to maintain the value of their account.