Assignment
Situation: A potential new client has just been left $1,100,000 (on an after-tax basis) from a wealthy grandparent and is deciding between your firm and Blackrock Investment in terms of who will manage their new found wealth. As part of the process, the client would like you to put together a mock portfolio, detailing all potential assets to be included in the portfolio, as well as your forecast of the economy, markets, etc. and why TIA will provide a higher risk adjusted rate of return than other managers.
Client: Your clients are Sam and Amy Kratchman both 39 years old (as of 10/16). They have two children, ages 7 and 3 and two dogs, Scooby and Shaggy. Sam and Amy need your help to plan for their retirement at age 65 and college tuition for both of their children. In addition, they would like to buy a beach house with their new found inheritance. They have been saving for many years but do not have a clear, diversified investment strategy to meet their future goals.
Asset Allocation (completed in part one b)
a. Graph your allocation and analyze why you chose this particular distribution
b. Explain how it makes sense given your client's objectives and constraints including discussion about correlation and fundamental reasoning for your decisions
c. Include your portfolio risk adjusted return versus the overall market.
Attachment:- Assignment.rar