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1. Portfolio Construction for John Robinson and Rebecca Robinson Using Portfolio Theory and Efficient Diversification Hypothesis. The project is to identify investment process and asset allocation target appropriate to the client's investment goals. You will have to identify and determine time horizons, risk tolerance, and long term objectives for the Robinson family. John Robinson was born on December 01, 1973 and his wife sue was born on June 22, 1975. They live at 7840 Westgate Drive, St. Louis, MO 63174. They have two children son Bill and daughter Tori who were born on February 8th, 2003 and March 15, 2007 respectively. John is a Senior Engineer for Caterpillar Corporation in St. Louis and Sue is the Director of Marketing in Graphix Incorporated in St. Charles. Bill has been working for the company for 17 years and Sue for 5 years. The personal asset ownership is joint. They have a mortgage which is the primary residence which has a market value pf S235,000 with a mortgage balance of $182,000 at the current rate of 7% annual percentage rate (APR). The monthly payments remaining for the mortgage is 348 months. They have personnel property in their household valued at $50,000 that is jewelry, furniture, appliances and clothing. They have two automobiles a BMW and a Honda at the market value of $30,000 and the auto balance is $15,000. Both automobiles were financed with First Community Credit Union at 9%. They have two credit cards unsecured personnel debt of $2,500 from capital one at 18% annual percentage rate. They both have 401k with Johns Current balance of $110,000 and sues current balance is $36,000 both receiving full employee match. Both contributes $4,000 per year equally. The have also Traditional IRA accounts with a balance of $8,400 for John and $7,950 foe Sue which they contribute $1,200 per year equally Here are their Investment Asset Information Checking Accounts: $3,500. Savings Accounts: $72,000 Money Market Accounts: $1,000 Certificate of Deposits: $25,000. Stock Mutual Funds: $24,000 Common Stock: $10,500 They do not have a WillLiving Trust between them John has a Life Term Insurance of $156, 000 provided by the employer and Sue $138,000 also provided by her employer, and both contribute to Social security. They also have long term disability benefits provided by their employer which is $2,900 for John and $2,500 for Sue. John makes $78,000 Gross Salary and Sue makes 569,000 Gross Salary annually. John's desired retirement age is 63 and Sue's desired retirement age is 60. Sue has an inheritance from her parents when they die valued at $400,000 who are 73 years and 70 years respectively. Construct a portfolio indicating their investment risks, allocation of specific assets according to what you are learning with investment theory and why you are doing that allocation. Practice investment principles as espoused by the FUNDAMENTALS OF FINANCIAL PLANNING also include in your report some quotes of investments of why you are that by Warren Buffet. If you were the Robinson Financial advisor, what would you advise them and Why? Please note that there are a lot of problems with the Robinson Current Financial Status which you need to advise them what to do. You cannot construct this portfolio successfully in less than 3 and half pages. 1. Portfolio Construction for John Robinson and Rebecca Robinson Using Portfolio Theory and Efficient Diversification Hypothesis. The project is to identify investment process and asset allocation target appropriate to the client's investment goals. You will have to identify and determine time horizons, risk tolerance, and long term objectives for the Robinson family. John Robinson was born on December 01, 1973 and his wife sue was born on June 22, 1975. They live at 7840 Westgate Drive, St. Louis, MO 63174. They have two children son Bill and daughter Tori who were born on February 8th, 2003 and March 15, 2007 respectively. John is a Senior Engineer for Caterpillar Corporation in St. Louis and Sue is the Director of Marketing in Graphix Incorporated in St. Charles. Bill has been working for the company for 17 years and Sue for 5 years. The personal asset ownership is joint. They have a mortgage which is the primary residence which has a market value pf S235,000 with a mortgage balance of $182,000 at the current rate of 7% annual percentage rate (APR). The monthly payments remaining for the mortgage is 348 months. They have personnel property in their household valued at $50,000 that is jewelry, furniture, appliances and clothing. They have two automobiles a BMW and a Honda at the market value of $30,000 and the auto balance is $15,000. Both automobiles were financed with First Community Credit Union at 9%. They have two credit cards unsecured personnel debt of $2,500 from capital one at 18% annual percentage rate. They both have 401k with Johns Current balance of $110,000 and sues current balance is $36,000 both receiving full employee match. Both contributes $4,000 per year equally. The have also Traditional IRA accounts with a balance of $8,400 for John and $7,950 foe Sue which they contribute $1,200 per year equally Here are their Investment Asset Information Checking Accounts: $3,500. Savings Accounts: $72,000 Money Market Accounts: $1,000 Certificate of Deposits: $25,000. Stock Mutual Funds: $24,000 Common Stock: $10,500 They do not have a WillLiving Trust between them John has a Life Term Insurance of $156, 000 provided by the employer and Sue $138,000 also provided by her employer, and both contribute to Social security. They also have long term disability benefits provided by their employer which is $2,900 for John and $2,500 for Sue. John makes $78,000 Gross Salary and Sue makes 569,000 Gross Salary annually. John's desired retirement age is 63 and Sue's desired retirement age is 60. Sue has an inheritance from her parents when they die valued at $400,000 who are 73 years and 70 years respectively. Construct a portfolio indicating their investment risks, allocation of specific assets according to what you are learning with investment theory and why you are doing that allocation. Practice investment principles as espoused by the FUNDAMENTALS OF FINANCIAL PLANNING also include in your report some quotes of investments of why you are that by Warren Buffet. If you were the Robinson Financial advisor, what would you advise them and Why? Please note that there are a lot of problems with the Robinson Current Financial Status which you need to advise them what to do. You cannot construct this portfolio successfully in less than 3 and half pages

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