Planit:Asset Allocation Exercise Answer Key

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=== Solve for the following problem: === Walter and Alice have a Moderate risk tolerance. Their current investments are broken down to: 40% in Fixed Income, 30% in Equities, 15% in U.S Equities and 15% in Cash. What is the rate of risk and return on their Current and Target Portfolio? Contents 1 Answer: 2 Answer: 3 Answer: 4 Answer: Answer: On the Risk Profile screen, answer the questions so that a Moderate Risk Profile is calculated. One possible combination includes: Click the Results button to check the resulting Risk Profile. Once this has been completed, click on the Next arrow in the top right-hand corner to continue to the Asset Allocation screen. On the Asset Allocation screen, there are now editable fields under the Current Portfolio section. 1. Change the Cash field from the default of 100% to 15%. 2. Change the Fixed Income field to 40%. 3. Change the Equities field to 30%. 4. Change the U.S Equities field to 15%. The recommended target portfolio is based on the couple's risk profile, so this does not need to be changed. 5. Click Calculate on the bottom portion of the screen. The total Rate of Return and Standard Deviation (risk) will be displayed under both the Current and Target portfolio.

United States of America
{{{United States Workbook Template}}}

Argentina
{{{Argentina Workbook Template}}}

Brazil
{{{Brazil Workbook Template}}}

United Kingdom

=== Solve for the following problem: === Walter and Alice Black have a Moderate risk tolerance. Their current investments are broken down to: 40% in Fixed Income, 25% in U.K Equities, 15% in U.K Small Cap Equities and 20% in Cash. What is the rate of risk and return on their Current and Target Portfolio? Answer: On the Risk Profile screen, answer the questions so that a Moderate Risk Profile is calculated. One possible combination includes: Click the Results button to check the resulting Risk Profile. Once this has been completed, click on the Next arrow in the top right-hand corner to continue to the Asset Allocation screen. On the Asset Allocation screen, there are now editable fields under the Current Portfolio section. 1. Change the Cash field from the default of 100% to 15%. 2. Change the Fixed Income field to 40%. 3. Change the U.K Equities field to 25%. 4. Change the U.K Small Cap Equities field to 20%. The recommended target portfolio is based on the couple's risk profile, so this does not need to be changed. 5. Click Calculate on the bottom portion of the screen. The total Rate of Return and Standard Deviation (risk) will be displayed under both the Current and Target portfolio.

Russia
{{{Russia Workbook Template}}}

China
{{{China Workbook Template}}}

Malaysia

=== Solve for the following problem: === Lee Ming and Lee An have a Moderate risk tolerance. Their current investments are broken down to: 40% in Fixed Income, 30% in Malaysian Equities, 15% in Regional Equities and 15% in Cash. What is the rate of risk and return on their Current and Target Portfolio? Answer: On the Risk Profile screen, answer the questions so that a Moderate Risk Profile is calculated. One possible combination includes: Click the Results button to check the resulting Risk Profile. Once this has been completed, click on the Next arrow in the top right-hand corner to continue to the Asset Allocation screen. On the Asset Allocation screen, there are now editable fields under the Current Portfolio section. 1. Change the Cash field from the default of 100% to 15%. 2. Change the Fixed Income field to 40%. 3. Change the Malaysian Equities field to 30%. 4. Change the Regional Equities field to 15%. The recommended target portfolio is based on the couple's risk profile, so this does not need to be changed. 5. Click Calculate on the bottom portion of the screen. The total Rate of Return and Standard Deviation (risk) will be displayed under both the Current and Target portfolio.

Singapore

=== Solve for the following problem: === Ming An and Elsie Lee have a Moderate risk tolerance. Their current investments are broken down to: 20% in Fixed Income, {{{Percent in Asset Class 2}}} in Global Fixed Income, 20% in Singapore Equities and 10% in Regional Equities. What is the rate of risk and return on their Current and Target Portfolio? Answer: On the Risk Profile screen, answer the questions so that a Moderate Risk Profile is calculated. One possible combination includes: Click the Results button to check the resulting Risk Profile. Once this has been completed, click on the Next arrow in the top right-hand corner to continue to the Asset Allocation screen. On the Asset Allocation screen, there are now editable fields under the Current Portfolio section. 1. Change the Cash field from the default of 100% to 20%. 2. Change the Fixed Income field to 20%. 3. Change the Global Fixed Income field to {{{Percent in Asset Class 2}}}. 4. Change the Singapore Equities field to 10%. The recommended target portfolio is based on the couple's risk profile, so this does not need to be changed. 5. Click Calculate on the bottom portion of the screen. The total Rate of Return and Standard Deviation (risk) will be displayed under both the Current and Target portfolio.

Hong Kong
{{{Hong Kong Workbook Template}}}

India
{{{India Workbook Template}}}

Caribbean
Jamaica {{{Jamaica Workbook Template}}} Trinidad and Tobago {{{Trinidad and Tobago Workbook Template}}} Barbados {{{Barbados Workbook Template}}} Bermuda {{{Bermuda Workbook Template}}} Bahamas {{{Bahamas Workbook Template}}} Puerto Rico {{{Puerto Rico Workbook Template}}}