Question: Assume that you plan to construct a portfolio aimed at achieving your stated objectives. The portfolio can be constructed by allocating your money to the following asset classes: common stock, bonds, and short-term securities.
a) Identify state and comment your investment objectives.
b) Determine an asset allocation to these three classes of assets considering your stated investment objectives. Explain your decision.
c) What reasons could cause you to make changes in your asset allocations?