1. Nancy is a widow with two teen- age children. Nancy’s gross income is $3,000 per month, and taxes take about 30% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should Nancy purchase?
2. One of the most important concepts in investment is how to construct an investment portfolio. This week, design a portfolio of 10 stocks based on the components of historical returns, stock diversification, and balanced risk. Identify in your investment portfolio the reasoning of why you chose the stock combination. Please provide citation in APA style.