JPMorgan Diversified Fund (JDVSX) is an investment that seeks to provide a high return from a diversified portfolio of equities and fixed-income investments. Drawing on a variety of analytical tools, the fund's adviser allocates assets from various types of equities and fixed income investments, based on the following allocation model: 30%-75% U.S. equity securities, including small, medium and large-cap securities; 25%-50% U.S. and foreign fixed income securities; and 0%-30% foreign equity securities. According to JPMorgan Funds statistics report data as of 31st December 2015, the fund strategic benchmark distributions were as follows: Strategic distribution U.S Equities 45% International Equities 20% Fixed Income 35% - Describe the risks of this type of funds, and explain the differences in risk between this institution and Microsoft.
JPMorgan Diversified Fund (JDVSX) is an investment that seeks to provide a high return from a diversified portfolio of equities and fixed-income investments. Drawing on a variety of analytical tools, the fund's adviser allocates assets from various types of equities and fixed income investments, based on the following allocation model: 30%-75% U.S. equity securities, including small, medium and large-cap securities; 25%-50% U.S. and foreign fixed income securities; and 0%-30% foreign equity securities. According to JPMorgan Funds statistics report data as of 31st December 2015, the fund strategic benchmark distributions were as follows: Strategic distribution U.S Equities 45% International Equities 20% Fixed Income 35% - Describe the risks of this type of funds, and explain the differences in risk between this institution and Microsoft.
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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JPMorgan Diversified Fund (JDVSX) is an investment that seeks to provide a high return from a diversified portfolio of equities and fixed-income investments. Drawing on a variety of analytical tools, the fund's adviser allocates assets from various types of equities and fixed income investments, based on the following allocation model: 30%-75% U.S. equity securities, including small, medium and large-cap securities; 25%-50% U.S. and foreign fixed income securities; and 0%-30% foreign equity securities. According to JPMorgan Funds statistics report data as of 31st December 2015, the fund strategic benchmark distributions were as follows:
|
|
Strategic distribution |
|
U.S Equities |
45% |
|
International Equities |
20% |
|
Fixed Income |
35% |
- Describe the risks of this type of funds, and explain the differences in risk between this institution and Microsoft.
Instructions:
1) Assume that the value of the fund is $ 100 million.
2) You should calculate the return for at least two years(501 outcomes) and use the exact dates for each asset.
Transcribed Image Text:Asset Name
Large Cap US Equity
Percent
SPY
S&P 500
35%
IWM iShares Russell 2000
10%
Total
45%
Mid/Small-Cap US Equity
MDY MidCap
IWN Small-Cap Value
5%
5%
Total
10%
International Equity
EFA
Developed (EAFE) International
10%
NAPIX Small-Cap International
5%
Total
15%
Fixed Income
AGG Investment Grade Taxable Bonds
25%
PHIYX High yield bonds
10%
Total
35%
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