Portfolio Allocation
1. Given the categories below - if you were to determine the optimal weighting of a portfolio of investments - what percentage of your investable funds would you allocate to what categories (must equal 100%). Why? Would this be different if you were 20 years older or 20 years younger?
Cash
US Treasuries
Bonds
Small Cap Stocks
Large Cap Stocks
International Stocks
2. From January 20X1 to January 20X2, the EUR appreciated 10% against the USD. Norvatis, a European pharmaceutical company, wants to adjust the prices of some of its drugs in the US. It raises the price on its Glucotrol, a diabetes drug, from USD40 per case in January 20X1 to USD43.2 per case in January 20X2. Calculate the percentage change in price.
+7.407%
+8%
-8%
-7.407%