Question

adjust the percentages of chris investments to make his portfolio one with potential for high growth
bond (low risk, low growth) 20%
mutual fund (medium risk, medium growth) 10%
stock (higher risk, higher growth) 30%
savings account (lowest risk, lowest growth) 40%
not quite.

Explanation:

To achieve high growth, we need to increase the percentage of investments with higher risk and higher growth (Stock) and decrease the percentage of investments with lower risk and lower growth (Savings Account, Bond). Let's assume we want to adjust the Savings Account (lowest growth, 40%) and Bond (low growth, 20%) to allocate more to Stock (higher growth, 30%) and Mutual Fund (medium growth, 10%).

Step 1: Analyze current allocations

• Bond: 20% (low risk, low growth)
• Mutual Fund: 10% (medium risk, medium growth)
• Stock: 30% (higher risk, higher growth)
• Savings Account: 40% (lowest risk, lowest growth)

Step 2: Adjust for high growth

To increase potential for high growth, we should decrease the percentage of low - growth investments (Savings Account and Bond) and increase the percentage of high - growth (Stock) and medium - growth (Mutual Fund) investments. For example, we can decrease the Savings Account percentage (e.g., from 40% to 10%) and the Bond percentage (e.g., from 20% to 0%), then increase the Stock percentage (e.g., from 30% to 60%) and the Mutual Fund percentage (e.g., from 10% to 30%). Let's check the sum: \(10\%+30\% + 60\%+0\%=100\%\).

A possible adjustment:

• Bond: 0% (decrease using the - button)
• Mutual Fund: 30% (increase using the + button)
• Stock: 60% (increase using the + button)
• Savings Account: 10% (decrease using the - button)

Answer:

A possible allocation for high growth potential is Bond: 0%, Mutual Fund: 30%, Stock: 60%, Savings Account: 10% (adjust using the + and - buttons as per the above logic).