Constructing the investment portfolio

Reference no: EM13791014

Part 1

In your own words, define the following:

Common stocks
Preferred stocks
Corporate bonds
Municipal bonds
American Depositary Receipt (ADR)

Part 2

Discuss the importance of asset allocation in constructing the investment portfolio. Make sure you address the following:

Describe asset classes, including stocks, bonds, and cash.
Explain the percentage of asset classes within the portfolio based on purpose and investor demographics.
Discuss the stock-bond ratio for a conservative, moderate, and aggressive investor.

Reference no: EM13791014

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