core

问题如下：

Marion currently holds 750,000 cash and short investment, he then goes to his investment manager Collins for a discussion about his investment portfolio. Based on the calculation, Marion’ human capital is valued at $1.2 million and 30% of it reveals equity-like. Collins determines that an overall target allocation of 45% equity is appropriate for Marion. Therefore in order to meet the target equity allocation for total economic wealth, the financial capital equity allocation for Marion should be closest to:

选项：

A.

44.1%

B.

69.0%

C.

63.9%.

解释：

The equity allocation of the Barksdale’s financial capital is calculated as follows:

Ÿ Total economic wealth = Human capital + Financial capital = $1,200,000 +$750,000 = $1,950,000.

Ÿ Target equity allocation of total economic wealth = $1,950,000 × 45% =$877,500

Ÿ Human capital equity allocation = $1,200,000 × 30% = $360,000 Financial capital equity allocation = $877,500 – $360,000 = $517,500

Ÿ Financial capital equity allocation = Financial equity allocation/Total financial capital= $517,500/$750,000 = 0.69, or 69%