Policy Statement

Policy Statement


I am a senior student pursuing a bachelor degree course in business. I aspire to finish my studies and apply for a master’s program. Moreover, I want to educate my children to become a better citizen in the years to come. Therefore, it is for these goals that I anticipate investing in portfolio management to maximize profit so I can cater for all my ambitions. The stock market has a high risk for investors but has the highest return on investment in the short-term compared to other businesses. Thus, my analytical skills gained throughout my study give me the confidence to invest $10000 in the stock and bond market. I want to invest 70% of my investment in stocks and the rest in the bond market.

Verify Your Goal (Return And Risk) and Explain Why You Choose That Goal.

My high stake in the stock market is driven by understanding that I will get maximum out of my portfolio to ensure I undertake my postgraduate in time. Nonetheless, I am certain to add income from corporate bond to caution the needs of my family in future.

Analysis of Your Risk Tolerance. Since I am young, raising a lot of money might prove to be difficult. Thus, I am willing to invest the little capital that I have and get maximum out of it. With my net worth still being relatively low, I will leverage my age to get into higher risk investments that will ensure I get a steady stream of income.

Analysis of assets and economy situation (bond & stock etc.).

The US economy is improving though in a slowed growth. For instance, the labor market is improving with declining unemployment rate (Federal Reserve, 2016). Moreover, the housing industry is expanding as a result of the low-interest rate that is synonymous with a low level of inflation. Thus, given the stable of the economy, the stock market is stable, and people have trust putting their money in the stock market (Fischer, 2016). The risk is minimal, and people expect to earn interest on their investments.

Investment Strategy and Asset Allocation. I am a student and looking to graduate in two years’ time. I need to benefit from my investment of $7000 (70%) in equities and $3000 (30%) in treasury bonds. However, over the years, I will balance out my portfolio to their initial allocation to my goals.

Investment Implementation Plan

While making investment decisions, I shall consider statutory limitations associated with those decisions to minimize income revenue reductions through taxes and fees while ensuring compliance with regulations.


I will ensure that the firm maintains sustainable levels of liquidity by ensuring continuous revenue inflow by cultivating high-income returns investments.




Federal Reserve (2016). Federal Reserve press release. Retrieve from http://www.federalreserve.gov/monetarypolicy/files/monetary20160127a1.pdf

Ficher, S. (2016). Speech: The lenders of last resort function in the United States. Retrieved from http://www.federalreserve.gov/newsevents/speech/fischer20160210a.htm




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