You Have Inherited $250,000

question 26

Essay

You have inherited $250,000.You have decided that since you don't need the money currently,you should invest for the long-term.After seeking advice,you decide on an asset allocation plan that puts 10% in short-term securities,75% in equities,and 15% in bond funds.How much money would you put in each category? (Show all work. )

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Definitions:

Financial Management

The strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institution; it also includes applying management principles to the financial assets of an organization.

Third-Party

An entity or individual not directly involved in a transaction or agreement but who may be affected by it or have an interest in it.

Honoring Checks

The act of accepting a check as payment and processing it as directed by the terms written on the check.

Drawer-Depositor

An individual or entity that has the authority to write and deposit checks within a banking relationship.