5.

You are looking into adjusting your existing investment portfolio. Your current investment portfolio is worth $200,000 and was allocated 70/30, stocks and bonds. After assessing your risk tolerance for the next ten years, you believe that an 60/40 allocation of stocks and bonds, respectively, is applicable for your portfolio. You believe that 8% 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 $700/month for the next ten years, what will your portfolio be worth?

		$513,853
		$119,834
		$495,891
		$117,240

6.

Over the past few years, housing costs have increased at a rate of 6% per year. If this trend were to continue, how many years would it be before a house doubled in value?

		18 years
		6 years
		12 years
		9 years.

7.

Over dinner, one of your friends is bragging about an investment that is "sure to double in value in two years." If this was true, what is the rate of return your friend would be receiving?

		36%
		18%
		24%
		12%

8.

If the average, long term inflation rate is 3%, how many years does it take for prices to double?

		24 years
		36 years
		12 years
		6 years