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FIDELITY INVESTMENTS SUGGESTED ASSET ALLOCATIONS: CasShort-Tem Bonds Domestic Equities Foreign Equiti es Short term Conservative Balanced Growth Aggressive growth Most aggressive 100% 0% 0% 0% 30 10 50 20 40 45 5 25 60 10 15 70 15 80 20 VANGUARD INVESTMENTS SUGGESTED ASSET ALLOCATIONS Dverall Objective Risk Level Cady Short-Term Be nds Sto cks Conservative Moderate 100% 80% Income-orianted 0% 0% 20% 30% Aggres sive Conservative 70% Balanced Moderate Aggres sive Conservative 60% 50% 40% 40% 50% 60% Growth 0% Moderate Aggressive 30% 20% 0% 70% 80% 100% T. ROWE PRICE MATRDX Non-retirement-goals Matrtx Your Time Hortzon

FIDELITY INVESTMENTS SUGGESTED ASSET ALLOCATIONS: CasShort-Tem Bonds Domestic Equities Foreign Equiti es Short term Conservative Balanced Growth Aggressive growth Most aggressive 100% 0% 0% 0% 30 10 50 20 40 45 5 25 60 10 15 70 15 80 20 VANGUARD INVESTMENTS SUGGESTED ASSET ALLOCATIONS Dverall Objective Risk Level Cady Short-Term Be nds Sto cks Conservative Moderate 100% 80% Income-orianted 0% 0% 20% 30% Aggres sive Conservative 70% Balanced Moderate Aggres sive Conservative 60% 50% 40% 40% 50% 60% Growth 0% Moderate Aggressive 30% 20% 0% 70% 80% 100% T. ROWE PRICE MATRDX Non-retirement-goals Matrtx Your Time Hortzon

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Exhibit 2.6 Initial Risk and Investment Goal Categories a nd Asset Allocati ons Suggested by Investment Firms FIDELITY INVESTMENTS SUGGESTED ASSET ALLOCATIONS: Domestic Equiti es Foreign Equiti es Ca dShort-Tem Bonds Short-term 100% 0% 0% 0% Conservaive 30 50 20 Balanced 10 40 45 5 Growth 5 25 60 10 Aggressive growth Most aggressive 15 70 15 80 20 VANGUARD INVESTMENTS SUGGESTED ASSET ALLOCATIONS Overall Objective Risk Level CadyShort-Term Bo nds Sto cks Income-orianted Conservative Moderate 0% 100% 80% 70% 0% 20% 30% Aggres sive Balanced Conservative 0% Moderate Aggres sive Conservative 60% 50% 40% 40% 50% 60% Growth 70% 80% 30% Moderate Aggressive 20% 0% 100% T. ROWE PRICE MATRDX Non-retirement-goals Matrix Your Time Hortzon 3-5 years 6-10 years 11+ years Stratagy 2 Stratogy 5 Stratogy 3 10% cash 20% cash Higher 40% bonds 100% stocks 30% bonds 60% stocks 40% stocks Stratagy 1 Stratogy 2 Stratogy 4 30% cash 50% bonds 20% cash 40% bonds 40% stocks 20% bonds 80% stocks Moderate 20% stocks All Cash Stratogy 1 Strategy 3 100% cash 0% cas 50% bonds 10% cash 30% bonds Lower 20% stocks 60% stocks Source: Based on data ampled from Personal Fidelity.com, Vanguard.com, and TRowe Price.com. Your Rsk Tolerance
Transcribed Image Text:Exhibit 2.6 Initial Risk and Investment Goal Categories a nd Asset Allocati ons Suggested by Investment Firms FIDELITY INVESTMENTS SUGGESTED ASSET ALLOCATIONS: Domestic Equiti es Foreign Equiti es Ca dShort-Tem Bonds Short-term 100% 0% 0% 0% Conservaive 30 50 20 Balanced 10 40 45 5 Growth 5 25 60 10 Aggressive growth Most aggressive 15 70 15 80 20 VANGUARD INVESTMENTS SUGGESTED ASSET ALLOCATIONS Overall Objective Risk Level CadyShort-Term Bo nds Sto cks Income-orianted Conservative Moderate 0% 100% 80% 70% 0% 20% 30% Aggres sive Balanced Conservative 0% Moderate Aggres sive Conservative 60% 50% 40% 40% 50% 60% Growth 70% 80% 30% Moderate Aggressive 20% 0% 100% T. ROWE PRICE MATRDX Non-retirement-goals Matrix Your Time Hortzon 3-5 years 6-10 years 11+ years Stratagy 2 Stratogy 5 Stratogy 3 10% cash 20% cash Higher 40% bonds 100% stocks 30% bonds 60% stocks 40% stocks Stratagy 1 Stratogy 2 Stratogy 4 30% cash 50% bonds 20% cash 40% bonds 40% stocks 20% bonds 80% stocks Moderate 20% stocks All Cash Stratogy 1 Strategy 3 100% cash 0% cas 50% bonds 10% cash 30% bonds Lower 20% stocks 60% stocks Source: Based on data ampled from Personal Fidelity.com, Vanguard.com, and TRowe Price.com. Your Rsk Tolerance
Mr. Ali is a telecommunication engineer working in Omantel. He is 45 years old, married with two children. He is considered one of the best in his company, and is likely to get many promotions. He expects that every year he will be able to save at least 6000 Rials 1. What should be Mr. Ali's investment objectives? 2. Are there any investment constraints Mr. Ali should consider. 3. What kind of an investment strategy (asset allocation) do you suggest for Mr. Ali ? Cash (%) Bonds (%) Equity (%)
Transcribed Image Text:Mr. Ali is a telecommunication engineer working in Omantel. He is 45 years old, married with two children. He is considered one of the best in his company, and is likely to get many promotions. He expects that every year he will be able to save at least 6000 Rials 1. What should be Mr. Ali's investment objectives? 2. Are there any investment constraints Mr. Ali should consider. 3. What kind of an investment strategy (asset allocation) do you suggest for Mr. Ali ? Cash (%) Bonds (%) Equity (%)
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