I have my account distributed as follows:
4% – Cash
0% – Bonds
39% – Large-Cap Stocks
29% – Mid/Small-Cap Stocks
28% – International Stocks
0% – Company Stocks (Texas Instruments)
Is this good for a 45 yr. old that wants to retire at 65? Please explain.
This is the problem and I don’t understand it. Can anyone help?
“Mutual fund reports often give correlations to describe how the prices of different investments are related. You look at the correlations between three Fidelity funds and the Standard & Poor’s 500 stock index, which describes stocks of large U.S. companies. The three funds are Dividend Growth (stocks of large U.S. companies), Small Cap Stock (stocks of small U.S. companies), and Emerging Markets (stocks in developing countries). For 2003, the three correlations are r = 0.35, r = 0.81, and r = 0.98″
Which correlation goes with each fund and why?
A mutual fund company’s newsletter says A well divresified portfolio inculdes assets with low corrleations. the newsletter includes a table of correlations between the annual returns on various classes of investments.For example, the correlation between municipal bonds and large cap stocks is .5 and the correlation betwween municiapl bonds and small cap stocks is .21
If rachel invests heavily in municipal bonds, she wants to diversify by adding an investement who returns do not closely follow he returns on ther bonds. should she choose large cap or small cap stocks for this purpose? and If she wants an investments that tends to increase when the return on her bond drops, what kind of correlation should she look for?
Here’s my problem:
A mutual-funds company’s newsletter says, “A well-diversified portfolio includes assets with low correlations.” The newsletter includes a table of correlation between the returns on various classes of investments. For example, the correlation between municipal bonds and large-cap stocks is 0.50, and the correlation between municipal bonds and small-cap stocks is 0.21.
a.) Rachel invests heavily in municipal bonds. She want to diversity by adding an investment whose returns do not closely follow the returns on her bonds. Should she choose large-cap stocks or small-cap stocks for this purpose? Explain your answer.
b.) If Rachel wants an investment that tends to increase when the return on her bonds drop, what kind of correlation should she look for?
This isn’t a real investing question, it’s just a problem in my homework that I have no idea how to figure out. Please help me….
Where can i do free research of penny stocks of small/micro cap companies in Britain, and also where can I get information and recommendations on British penny stocks to invest in. If you know any websites which will help me with UK penny stocks then please inform.