Learning Goal: I’m working on a business project and need the explanation and answer to help me learn.
I am a 53-year old with a $1,200,000 net worth, and I claim to be risk averse. I have a pre-tax 401K with $600,000. My 401K is invested very risk aversely, and I have been severely underperforming the market. I work for Medtronic and have company stock worth $300,000 and I have a fully paid home worth $300,000.
Devise an investment strategy composed of an investment mix of risk free and risky assets for me using the concepts from this course. Use whatever investment vehicles you want. Please use at least some of the equations learned in this course to convince me of your strategy as I am nervous about changing my investment scheme. You can use historical returns of the funds you choose. If you are planning to lay out different economic scenarios, you can come up with your own probabilities. I just want to see you use some of the equations and concepts from this course. The word count for this paper should be roughly 1500 words. Please use APA format. Submit your paper here.
