Asked by Mohith Ancha on Jun 03, 2024
Verified
Go Global Investment Management has an asset allocation strategy of 70% U.S. investments and 30% global investments. Within the United States, Go Global has allocated 65% of its portfolio to equities and 35% to bonds. Go Global now holds 4% of its U.S. equity portfolio in the stock of Wally World. Internationally, Go Global has allocated 62% to equities and 38% to bonds. About what percentage of Go Global's total portfolio is invested in Wally World?
A) 1%
B) 1.26%
C) 1.5%
D) 1.82%
Asset Allocation Strategy
A method of investment where an individual divides their investment portfolio among various asset categories, such as stocks, bonds, and cash, to optimize risk and return.
Go Global
A strategy or approach aimed at expanding business operations internationally to access larger markets and opportunities.
U.S. Equity
Shares that represent ownership in U.S.-based companies and can be traded on American stock exchanges.
- Determine suitable asset distribution according to the profiles and objectives of investors.
- Familiarize oneself with the structure and aims of institutional investors.
Verified Answer
ZK
Learning Objectives
- Determine suitable asset distribution according to the profiles and objectives of investors.
- Familiarize oneself with the structure and aims of institutional investors.