Data:

Assume the same information from Case Study #5, but now Ryan’s result from his Risk-Tolerance Test was “aggressive.”

Application:

(a) Based on the same rule of thumb, which of the following most likely represents Ryan’s asset allocation?

A. 35% cash, 40% large-cap, 25% bonds

B. 25% cash, 35% large-cap, 25% small-cap, 15% international

C. 10% cash, 25% bonds, 50% large-cap, 15% small-cap

D. 15% bonds, 30% large-cap, 30% small-cap, 25% international

(b) What would his allocation be if his results were “very aggressive”?