AssignmentName: Unit 5 Discussion Board Deliverable Length: 400–500 words with the references Alice has now been investing for several years and she would like to build an investment portfolio. Her...

Since Alice has been investing for several years one thing which Alice have understood is that
risk and return goes hand by hand i.e. more risk means higher expected return and vice versa. In
the present case we will help Alice in preparing an investment portfolio whose objective is to
minimize the risk to moderate level with the maximum possible return. The time horizon of the
current portfolio is 25 years which is really very long period of time.
In order to build a portfolio which will maximize the return and carrying moderate risk for a long
horizon portfolio Alice needs to follow the following points:-
1) If an investment is made for a longer period of time in such case credit worthiness and
sustainability of the investment must be analyzed in depth, reason being the horizon of the
investment. Risk of default is...