Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The amount that should be invested in the money market account is__? 2. The Amount that should be invested in the bond fund is

image text in transcribed

1. The amount that should be invested in the money market account is__?

2. The Amount that should be invested in the bond fund is __?

3. The amount that should be invested in the international stock fund is__?

4. The amount that should be invested in domestic stock fund is__?

A person plans to invest a total of $100,000 in a money market account, a bond fund, an international stock fund, and a domestic stock fund. She wants 60% of her investment to be conservative (money market and bonds). She wants the amount in domestic stocks to be 4 times the amount in international stocks. Finally, she needs an annual return of $4,000. Assuming she gets annual returns of 2.5% on the money market account, 3.5% on the bond fund, 4% on the international stock fund, and 6% on the domestic stock fund, how much should she put in each investment? The amount that should be invested in the money market account is $ (Type a whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental And Safety Auditing Program Strategies For Legal International And Financial Issues

Authors: Unhee Kim, John F. Falkenbury, Timothy A. Wilkins, Ralph Rhodes, Richard J. Satterfield

1st Edition

ISBN: 1566702461, 978-1566702461

More Books

Students also viewed these Accounting questions