The second homework: My portfolio investment plan (by Ashe)

edward

Financial Risk Management Course Homework

Dear Professor,


1. My portfolio investment plan includes 7 items:


20% in securities,


20% in real estate,



20% in deposit account,

15% in spa and cosmetic,


15% in gold,


5% in insurance,


5% in currency.


2. The reason i choose these items:
- Securities: The amount of securities that you invest will allow you to surf to make a profit of about 2 to 3% per month. This investment will be a bit risky, but it for those who have liver enrich. Choose big business, reputation and buy shares. Receive dividends when the company makes a profit.


- Real estate: Investing in a house, apartment, residential land. If insufficient funds, can buy land in the suburbs or areas where economic development. After a few years, you can get profit from this investment.


- Deposit account: In fact, if business is possible, investment is the best choice. But when the market is constantly fluctuating, the deposit account is a safety hints.
Usually by interest rates and the value added services of the bank, your money will not devaluation. If you do not draw interest, you will have accrued the money monthly and accumulated them in ascending.


- Spa and cosmetic:
The more developed societies, beauty needs of people especially women are higher. Opening spa and cosmetic can get profit, moreover it can make yourself beautiful.


Can you explain why you choose this item as your investment item?


- Gold: Buying gold at the low price time to storage. When you see the price of gold increases, sale them and get profit.


- Insurance: In fact, insurance is risk prevention measures, it is a form of investment profitability. But it is also a way to lay out the money. In addition to preventing risk when we meet incident, we can earn interest and profit from the insurance premiums.

- Currency: it is high liquidity item. especially US dollar.

By FRM course student:  Ashe