Calculate smith return objective

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Reference no: EM133030820

-Jane Smith has an investment portfolio of $5million. She is 68 years old, and has no children. After her death, she wishes to leave her portfolio to a local art museum that has given her relatively free access to art exhibits over the past decade. Her health is better than average and she maintains an active lifestyle consisting of frequent swimming, biking, and playing tennis with friends at her country club. Smith estimates that to maintain her standard of living, she needs approximately $250,000 per year. Expenses are expected to grow at an expected inflation rate of 2%. She state that as a retiree, her tolerance for risk is "below average". Smith has come to you for assistance in investing her assets

-Calculate Smith's return objective

-State and explain Smith's ability to take risk

-State and explain Smith's time horizon

-State and explain Smith's level of Liquidity constraints

Reference no: EM133030820

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