During the initial meeting, Lisa indicated that her investment return objective was to earn a 9% total return per year.

finance

Description

As an investment advisor for Wealth Securities Inc., you had just met with a potential new client, Lisa Wilson. Your task was to help Lisa to analyze the current positions and returns of some of the securities currently held by her and recommend a new investment portfolio to her that is consistent with her risk and return objectives


THE CLIENT 

During the initial meeting, Lisa indicated that her investment return objective was to earn a 9% total return per year. You helped her assess her risk preferences and it was concluded that she could accept up to a 20% portfolio volatility, measured by standard deviation in her portfolio in any one year. 


PREVIOUS ADVICE 

Lisa indicated that she was seeking advice regarding the two existing investments she has. Below is the information regarding the two investments. 


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