Question
1. What is your expected portfolio return of an investment portfolio with a 50/50 allocation of stocks and bonds if you expect long term equities
1.
What is your expected portfolio return of an investment portfolio with a 50/50 allocation of stocks and bonds if you expect long term equities to return 6%, and long term bonds to return 3%?
5.2% | ||
5.4% | ||
4.7% | ||
4.5% |
2.
What is your expected portfolio return of an investment portfolio with a 60/40 allocation of stocks and bonds, respectively, if you expect long term equities to return 6%, and long term bonds to return 4%?
5.2% | ||
6.2% | ||
4.6% | ||
4.8% |
3.
You are looking into developing your first investment portfolio. After assessing your risk tolerance, you believe that an 80/20 allocation of stocks and bonds, respectively, is where you want to begin. You believe that 7% is what stocks will return over the next ten years, and 4% is what you expect to return in your bond portfolio. If you invest $400/month for the next fifteen years, what will your portfolio be worth?
(assume monthly compounding)
$154,854 | ||
$109,579 | ||
$116,483 | ||
$120,378 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started