WPS Office= MenuCutPaste Copy FormatPainterPage: 2/5 Words: 731AInvestment Man...ework 1[2418]Q • +Home InsertTimes New Roman 12▾BIU A X² X₂ A & A - A ====BARS.CSpell CheckType here to searchSection Tools Q Click to find commandsPage Layout References Review ViewA A Aa=•=•==XA91.mLLJAaBbCcDd AaBb AaBBC AaBbCNormal Heading 1 Heading 2 Heading 3 =Mr. B. Philips is 60 years of age and is planning to retire in the next four years. He is inexcellent health, pursues a simple but active lifestyle, and has two adult children. e has interestin a private company for $20 million. As part of his estate planning he has decided that he willdonate half of this to a charity upon his death. He now realizes that an appropriate investmentpolicy and asset allocations are required if his goals are to be met through investment of hisconsiderable assets. Mr. Philips has a conservative to moderate risk preference. Currently, thefollowing assets are available for use in building an appropriate portfolio for him:$10.0 million cash (from sale of the private company interest, net of a $10 million that heplanned to give to charity)$10.0 million stocks and bonds ($5 million each)$ 5.0 million in investment property (now fully leased)$ 10.0 million value of his residence$35.0 million in total available assetsRequired:b. Recommend and justify a long-term asset allocation that is consistent with the investmentpolicy statement you created in Part a. Briefly explain the key assumptions you made ingenerating your allocation.NB. An assessment of each investor current situation should be given in order to developan appropriate investment strategy.四阁8:42VCompatibility ModeSign in1Word Typesetting100%Go Premium& - 13-TFind and Select™Replace27°C A@O4) ENGSettings9:31 pm24/5/2022↑07+x>SDRŝt Ⓒ0000KA35 WPS Office= MenuCutPaste Copy FormatPainterPage: 2/5 Words: 766 Spell CheckAType here to searchInvestment Man...ework 1[2418]Q •Section Tools Q Click to find commandsmTimes New Roman 12Home Insert Page Layout References Review ViewA A Aa=•=•==XA9BIU A X² X₂ A & A - A ==== E· Ð· B-≡▾LLJAaBbCcDd AaBbCcDd AaBbCcDd AaBbCcDdHeader fontstyle01 fontstyle21 fontstyle31 =Client No 2.Mr. B. Philips is 60 years of age and is planning to retire in the next four years. He is inexcellent health, pursues a simple but active lifestyle, and has two adult children. He has interestin a private company for $20 million. As part of his estate planning he has decided that he willdonate half of this to a charity upon his death. He now realizes that an appropriate investmentpolicy and asset allocations are required if his goals are to be met through investment of hisconsiderable assets. Mr. Philips has a conservative to moderate risk preference. Currently, thefollowing assets are available for use in building an appropriate portfolio for him:$10.0 million cash (from sale of the private company interest, net of a $10 million that heplanned to give to charity)$10.0 million stocks and bonds ($5 million each)$5.0 million in investment property (now fully leased)$ 10.0 million value of his residence$35.0 million in total available assetsRequired:a. Formulate and justify an investment policy statement for each investor setting forth theappropriate guidelines within which future investment actions should take place. Your policystatement should encompass all relevant objective and constraint considerations.b. Recommend and justify a long-term asset allocation that is consistent with the investmentCompatibility ModeB EUE142G+BARS.C0 2VSign in1Word Typesetting100%Go Premium& - 13-TFind and Select™Replace27°C A@O4) ENGSettings9:27 pm24/5/2022↑07+x>SDRŝt Ⓒ0000KA(34)

An Investment Policy Statement (IPS) is a crucial document that outlines an investor's financial…

Answered: Mr. B. Philips is 60 years of age and…

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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