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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

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