Investment Portfolio for the Susan Griffin - Case Study Example

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Investment Portfolio for the Susan Griffin

The greater return possibilities usually come at greater losses risk expenses. This is usually determined by risk/return tradeoff. Therefore, it would be appropriated for Griffin to subdivide her liquid asset into degree of risks. Ventures that are associated with high risks must have higher percentages of her investment. From the list of her appreciate selections, the High – yield bonds or the “junk” bonds should be the first priority since they are issued with companies associated with relatively high credit risks. The company should be allocated fifty percent of the total investment followed by investment – grade bonds which should be allocated 35 percent. The investment grade bonds are noted to be supplied by a high credit quality companies; however, such companies have less liquid compared to the treasury security. The rest of the investment should investments in the U.S. Treasury bonds (Reilly and Brown 88). This company is not associated with credit risks and has it is very liquid; hence, they are easy to buy and sell. The latter company ventures less into risky business; thus, it is unlikely to make much profit.
It should be noted that Griffin was worried about active involvement into the business, these investment types will keep her active by monitoring the movement of these three stock markets and with the advice from her brokers, she will know when to sell and buy the same with return maxim. Through these investments, Griffin will maintain her monthly expenditure and still lead a comfortable life.
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In the paper “Investment Portfolio for the Susan Griffin” the author analyzes development of the investment portfolio for the Susan Griffin, the owner and the CEO of the company. Regardless of the successes of the company Susan wants to free herself from the responsibilities associated with the business…
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