Your firm’s investment portfolio was valued at $100,000,000 at the beginning of the year. Approximately 60%

of the portfolio was invested in fixed-income securities, primarily U.S. government bonds. The remaining 40%

was invested in mutual funds selected by your firm’s portfolio manager. During the year U.S. government bonds yielded 6.0%, and the change in the Standard and Poor’s 500 index was 10.0%. Reported investment income during the year was $6,000,000 including realized gains. The firm also reported an unrealized loss of $1,000,000.

Total yield on the portfolio was thus $5,000,000. What value would you have expected given the facts above?