Amount available for investment is 1,000,000, and it can be allocated to the equity, US 30-year Treasury bonds, and cash. There are various factors that influence the allocation of funds.

Asset

U.S. Equities

U.S. 30-Year Treasury Bonds

Cash

Allocation

70%

20%

10%

100%

GDP forecast for 2015 is expected to be about 3%. Various sources predicted the GDP of US is expected to increase due to the economic stability except for United Nations forecast all forecasted that GDP of US will be greater than 3% from the current level of 2% to 2.5% (Lapitskiy, 2014). Inflation rate of US is expected to increase slightly from the current level which cannot expect to have any adverse impact over the economic growth (, 2014).

But the great advantage for the country is the continuously...