Question

According to the Rule of Thumb for asset allocation, and using 100 as your base, what percentage of the portfolio should be i
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Based on rule of thumb for asset allocation by age, when you subtract your age from 100, the amount you get should be the % of portfolio invested in equity, and the remaining should be in debt.

So, in this case,

If you are 32,

% of portfolio in Equity = 100 - 32 = 68

Hence, 68% should be in equities.

So, remaining 32% should be in bonds (or debt).

Add a comment
Know the answer?
Add Answer to:
According to the Rule of Thumb for asset allocation, and using 100 as your base, what...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 58. Asset Allocation According to the Rule of Thumb for asset allocation, and using 100 as...

    58. Asset Allocation According to the Rule of Thumb for asset allocation, and using 100 as your base, what percentage of the portfolio should be invested in bonds for a 32 year old investor (Use only whole percentages with no decimal places)

  • Chapter 06 Practice Test Question 17 15 Asset Allocation Between Risky and Riskless Investments You have...

    Chapter 06 Practice Test Question 17 15 Asset Allocation Between Risky and Riskless Investments You have a risky portfolio with a beta of 1.3. You wish to reduce the portfolio beta to 0.3. In order to do this you will change your asset allocation and add risk free government bonds. What percentage of your investment should be in government bonds and what percentage should be in the risky portfolio to accomplish your goal? points Skipped Multiple Choice eBook Print O...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Estimated...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Estimated...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here Estimated...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing...

  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

    Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT