Assignment
John and Roberta Johnson are approaching retirement. They have accumulated $800,000 in funds. They would like to divide their funds into two equal portfolios, one conservative portfolio that will generate income, and one aggressive portfolio that is focused on growth where income generation is not a consideration.
Design two separate 400,000 portfolios based on the goals of each portfolio.
• Each portfolio should contain 3 common stocks, one investment grade bond you researched at this site, and one ADR you researched at this site.
• Be sure to choose stocks for each portfolio with appropriate dividend yields and betas based the goal of each portfolio. Explain why you believe each investment chosen is a good choice based on fundamental analysis. Explain what type of business each stock choice represents, and information about the financial position of each company. Be sure your portfolios are diversified and all your investments aren't in the same type of business.
• Finally, put all your investments for each portfolio into a table and in the table show the amount of money in each investment, the beta for each stock chosen, the dividend yield for each stock chosen, and the coupon rate for each bond chosen.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.