In other to increase the growth potential of Chris's investment, then he'll have to invest higher proportion in high yield portfolios. Hence a potential high growth portfolio allocation may be :
- Stock = 50%
- Mutual Fund = 35%
- Bond = 10%
- Savings = 5%
In other to build a potentially high growth portfolio, then Chris's focus would have be more on investment with higher rates and thus will have to take high risks.
Savings and Bonds would take up the lowest percentage as they have lower risk but also low return on investment.
Therefore, Chris will have to concentrate on investing majorly in stocks and mutual funds as they yield high rate but at high risk level too.
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