Marc and Julian have $30,000 they would like to invest. Based on all you know
about their investment priorities, interests, and tolerance for risk, assign each type of
investment a percentage of the $30,000. Your allocations should add up to 100
percent.
Types of investments and their average annual rate of return:
-Cash, 0.5%
-High-risk stocks and bonds, 8-10%
-Low-risk stocks and bonds , 3-4%
-Mutual funds, 5-7%
-Real estate, 6-8%
-Retirement, 4-6%
Based on Marc and Julian's investment priorities, interests, and tolerance for risk, we can allocate the $30,000 as follows:
- Cash: 10% ($3,000)
- High-risk stocks and bonds: 20% ($6,000)
- Low-risk stocks and bonds: 15% ($4,500)
- Mutual funds: 25% ($7,500)
- Real estate: 20% ($6,000)
- Retirement: 10% ($3,000)
Total: 100% ($30,000)