ALLOCATION AND DIVERSIFICATION CASE STUDY

by | Jul 27, 2022 | Development

 

You graduated from college and have been working at a job you like. You received some money at graduation and have been saving on a regular basis. You have accumulated $20,000 and have decided to open a Fidelity Brokerage account and begin investing. You have been thinking about the type of portfolio you would want to build and what your investing strategy would be. You considered the following 3 portfolios.
Portfolio I is designed for investors with aggressive growth investment objectives. Such investors seek maximum returns and are willing and able to accept high levels of risk and volatility. Current income is not a factor in this portfolio.
Portfolio II is designed for investors with long-term growth objectives. Such investors seek to enhance the value of their capital over time. They are willing to assume a reasonable level of diversified market risk. Current income is not an important factor for such investors.
Portfolio III is designed as a balanced portfolio for current investment income along with capital preservation and modest growth. The portfolio is allocated between equities and fixed-income securities. This portfolio is best suited for conservative investors or those nearing or already enjoying a retirement lifestyle.
You decided to build your portfolio similar to Portfolio II. You decided on several principles to adhere to when building your portfolio and you landed on the funds listed by the principles.
1. A position in technology because you believe it will boom in coming years ROGSX
2. Total stock market exposure with average risk. FSKAX
3. A high growth fund with a great track record. PRGFX
4. A dividend fund that will add safety in a down market and generates a dividend. DLTNX
5. An emerging markets fund to take advantage of the growth around the world. BEXFX

You have determined to use the 5 mutual funds listed above with these priorities:
• Number one priority is growth, broad exposure to the stock market so USE THAT FUND TO ALLOCATE THE MOST. (30%)
• Number two priority is high growth. USE THAT FUND TO ALLOCATE the next highest percentage (25%)
• Great exposure to technology. USE THAT FUND TO ALLOCATE the next highest percentage. (20%)
• Some exposure to emerging markets. (15%)
• A bond fund can serve as a hedge in bad times. Allocate. (10%)

 

 

TICKER TYPE PURCHASED July 24,2017 CLOSING PRICE ALLOCATION IN DOLLARS
$ ALLOCATION
PERCENTAGE
% 2017 ENDING PRICE
Dec. 6th 2017 $ GAIN/LOSS % GAIN/LOSS
ROGSX TECHNOLOGY $23.87
PRGFX GROWTH $66.29
FSTMX TOTAL MARKET $71.39
BEXFX EMERGING MARKETS $13.76
DLTNX BONDS $10.73
Total $20,000 100%

You have $20,000 to invest

Step 1 Go to Yahoo Finance and review each fund.
Step 2 On the above chart enter the dollar and percentage investment AS STATED ABOVE
Step 3 Enter THE CLOSING PRICE ON Dec. 6th, 2017 for each of the 5 funds.
Step 4 What would you have done differently? ____________________________________________________________________________________________
Step 5 Which TICKER had the greatest percentage increase?_________________________________

 

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

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