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    Total Amount To Invest:: Moderate Risk Tolerance

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    Elaine
    Your aunt handed you $10 million to invest with a moderate risk tolerance. You allocated 50% to stocks, 25% to bonds, and 25% to mutual funds. This included large cap stocks, government and corporate bonds, and balanced/equity mutual funds. The estimated annual return is 5.5% and your estimated annual commission is $165,805.56.

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    Total Amount To Invest:: Moderate Risk Tolerance

    Uploaded by

    Elaine
    53 views3 pages
    Your aunt handed you $10 million to invest with a moderate risk tolerance. You allocated 50% to stocks, 25% to bonds, and 25% to mutual funds. This included large cap stocks, government and corporate bonds, and balanced/equity mutual funds. The estimated annual return is 5.5% and your estimated annual commission is $165,805.56.

    Original Description:

    Template for Investment portfolio

    Original Title

    Investment Portfolio

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    Your aunt handed you $10 million to invest with a moderate risk tolerance. You allocated 50% to stocks, 25% to bonds, and 25% to mutual funds. This included large cap stocks, government and corporate bonds, and balanced/equity mutual funds. The estimated annual return is 5.5% and your estimated annual commission is $165,805.56.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    53 views3 pages

    Total Amount To Invest:: Moderate Risk Tolerance

    Uploaded by

    Elaine
    Your aunt handed you $10 million to invest with a moderate risk tolerance. You allocated 50% to stocks, 25% to bonds, and 25% to mutual funds. This included large cap stocks, government and corporate bonds, and balanced/equity mutual funds. The estimated annual return is 5.5% and your estimated annual commission is $165,805.56.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Investment Portfolio

    Case
    Your rich aunt Bella wanted you to help her invest her money and requested you to be her Portfolio Manager. She is 50 years old.
    She handed you a check for 10M and said she will give you a 5% commission on the earnings.
    Assume she has a [1] moderate risk tolerance. Prepare a detailed investment portfolio for her.
    Calculate the potential earnings and how much will you receive as your commission per year.
    Total Amount to Invest: PhP 10,000,000.00
    Column1
    Return Allocation 1st Year Earning End Balance 5% Commission

    TBills (2%) 2% PhP 333,333.33 PhP 6,666.67 PhP 340,000.00 PhP 333.33
    Gov Bonds (4%) 4% PhP 666,666.67 PhP 26,666.67 PhP 693,333.33 PhP 1,333.33
    Time Deposit (3%) 3% PhP 500,000.00 PhP 15,000.00 PhP 515,000.00 PhP 750.00
    Corp Bonds (6%) 6% PhP 1,000,000.00 PhP 60,000.00 PhP 1,060,000.00 PhP 3,000.00
    Balanced Mutual Funds (8%) 8% PhP 1,111,111.11 PhP 88,888.89 PhP 1,200,000.00 PhP 4,444.44
    Equity Mutual Funds (10%) 10% PhP 1,388,888.89 PhP 138,888.89 PhP 1,527,777.78 PhP 6,944.44
    PhP 5,000,000.00 PhP 336,111.11 PhP 5,336,111.11 PhP 16,805.56

    Total Amount to Invest: PhP 5,000,000.00


    Stocks Company Price Shares Total Cost Market Value Return 5% Commission
    Large Cap Stock BDO 143 8000 PhP 1,147,374.80 PhP 1,144,000.00 PhP (3,374.80) N/A
    ALI 43.15 10000 PhP 432,772.93 PhP 431,500.00 PhP (1,272.93) N/A
    DD 42 1000 PhP 42,123.90 PhP 42,000.00 PhP (123.90) N/A
    BLOOM 10.38 2000 PhP 20,821.24 PhP 20,760.00 PhP (61.24) N/A
    FDC 7.57 1500 PhP 11,388.50 PhP 11,264.73 PhP (123.77) N/A
    JFC 246 1000 PhP 246,725.70 PhP 246,000.00 PhP (725.70) N/A
    JGS 76.2 5000 PhP 382,123.95 PhP 381,000.00 PhP (1,123.95) N/A
    TEL 1,708.00 500 PhP 856,519.30 PhP 854,000.00 PhP (2,519.30) N/A
    MER 290.6 500 PhP 145,728.64 PhP 145,300.00 PhP (428.64) N/A
    Mid Cap Stock IDC 5.55 10000 PhP 55,663.73 PhP 55,500.00 PhP (163.73) N/A
    Small Cap Stock PhP - N/A
    Did not get-very risky PhP - N/A
    Totals: PhP 39,500.00 PhP 3,341,242.69 PhP 3,331,324.73 PhP (9,917.96)
    PhP 5,000,000.00
    Contingency Fund: PhP 1,658,757.31

    As of 04/21/2018
    Submitted by: Elaine Mae M. Mejos Page 1 of 3
    Investment Portfolio

    Desired Asset Allocation


    Total Amount to PhP 10,000,000.00
    Invest:
    50% Stocks PhP 5,000,000.00
    25% of Bonds PhP 2,500,000.00
    25% Mutual Funds PhP 2,500,000.00
    Total: PhP 10,000,000.00

    Type Rate of Return Allocation % Allocation in Peso

    Allocation Based on Interest Rates

    Bonds
    TBills (2%) 2% 13.33% PhP 333,333.33
    Gov Bonds (4%) 4% 26.67% PhP 666,666.67

    Time Deposit (3%) 3% 20.00% PhP 500,000.00


    Corp Bonds (6%) 6% 40.00% PhP 1,000,000.00

    15% 100.00% PhP 2,500,000.00

    Mutual Funds

    Balanced Mutual Funds 8% 44% PhP 1,111,111.11

    Equity Mutual Funds (10 10% 56% PhP 1,388,888.89

    Stocks
    Mid Cap Stocks (14%) 14% 30% N/A

    Large Cap Stocks (11%) 11% 50% N/A

    Small Cap Stocks (16%) 16% 20% N/A

    Submitted by: Elaine Mae M. Mejos


    As of 04/21/2018
    Page 2 of 3
    Notes Derived Assumptions
    Structure Timeframe
    Moderate investors accept some risk to principal but adopt a balanced approach
    with intermediate term time horizons of five to 10 years. Combining large-
    company mutual funds with less volatile bonds and riskless securities, moderate
    investors often pursue a 50/50 structure. A typical strategy might involve
    1 investing half of the portfolio in a dividend-paying, growth fund such as the T. 50/50 5-10
    Rowe Price Equity Index 500 fund, which holds average risk and has returned
    7.19% annually on average through the 10 years ending July 1, 2016.

    Interest Rate for Balanced Mutual Fund will remain constant for 5 consecutive
    2 years. 1.5 5

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