AQR Diversity Risk Factor of the Portfolio Assignment

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Mathematics

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Evaluate the diversity of the portfolio.

Describe the risk factor of the portfoilio.

Describe an individual who might carry this type of portfo0lio.

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Analyze the porfolio shown below. 

Then, answer the questions using complete sentences.

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14. Analyze the portfolio shown below. Then, answer the questions using complete sentences. Portfolio A Municipal Bond 25% U.S. Treasury Bond 25% Preferred stock in established company 15% Common stock in developing firm 5% Savings Account 30% Part 1 (6 points): Evaluate the diversity of this portfolio. Explain, using complete sentences, if this portfolio is not diverse, minimally diverse, somewhat diverse, or extremely diverse. Why? Part 2 (6 points): Describe the risk factor of this portfolio. Is this an aggressive, conservative, or moderate portfolio? How do you know? Part 3 (6 points): Describe an individual who might carry this type of portfolio. Include details such as • age • occupation • family situation (single, married, single with children, or married with children) • investment goals.
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Explanation & Answer

Attached.

Running head: DIVERSITY OF PORTFOLIO

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Diversity of Portfolio
Name
Institution

DIVERSITY OF PORTFOLIO

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The diversity of the Portfolio

The current portfolio is extremely diversified. It contains a total of five securities brought
together so that the weight of each security is small. The collection is divided into five different
categories with the most signifi...


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