Portfolio Report On Asset Allocation Essay

1767 Words Jun 10th, 2015 8 Pages
Portfolio report
I started my portfolio with a starting balance of $500,000. This is the cash amount, which was provided. I needed to follow the provided instructions on asset allocation. According to the instructions, I was supposed to allocate my initial investment as follows; Future contracts $20,500, individual stocks $250,0000, Individual bonds $100,000, Mutual funds/ETFs $100,000 and hold $29,500 in cash. In choosing the stock I had to take into considerations the various risks as well as ratings. This was done using the knowledge that I have learned in class. I also realized that in order for my portfolio to perform, I had to take certain risks as well as keep track of the various stocks performance so as to make important decisions. I have learned that for my portfolio to perform I had to take certain risks and failure to take risks has lead to low performance.
In holding my portfolio, I have short and long-term goals to achieve. My short-term goal is to finance my MBA in 2 years. My long-term goal is to buy my own house in 10 years. Some of the constraints I have faced is that I am a student and thus allocating time for studying and research is a challenge. I am also not experienced in stocks and portfolio and therefore some of my decisions and projections may be bad. I have to take moderate risks. Also, regarding liquidity constraint, I like to have more cash in hand for many purposes such as capital budgeting and future investments opportunities. I am committed…

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