Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Based on your #1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return

image text in transcribed
image text in transcribed
image text in transcribed
6. Based on your #1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the risk-free asset (3%)? How much would the initial wealth grow to in the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? 2. Based on your '#1 goal,' would this part of the initial wealth (investable amount) be adequate - using 'gut feelings - to achieve that goal? What if you were to combine more than 1 item? Which items? How would your numbers change? 3. Now review the above and after adjusting the 'gut' estimates - based upon your revised thoughts on how much you can afford to put towards the new investment. Make sure you explain in detail. 4. What $ amount would be available now to put towards achieving your '#1 goal? 5. Based on your #1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the average common stock (9%)? How much would the initial wealth grow to over the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? 6. Based on your '#1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the risk-free asset (3%)? How much would the initial wealth grow to in the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? 7. Based on your '#1 gcul' target $s needed required to achieve that goal, and, if you used the historical average return of the average common stock (9%), how much initial wealth is needed in the time horizon for your #1 goal? Compare to the revised $ investable amount from selling your item(s). Show your calculations following the examples in the Lecture Notes. What is your reaction? 8. Based on your '#1 goal' target $s needed required to achieve that goal, and, the revised $ investable amount from selling your item(s), what return do you need to match them in the time horizon for your #1 goal? Show your calculations following the examples in the Lecture Notes. What is your reaction? 6. Based on your '#1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the average common stock (9%)? How much would the initial wealth grow to over the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? #1 Goal= $250,000 Time to reach goal= 3 years Investable Amount= $25,000 6. Based on your #1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the risk-free asset (3%)? How much would the initial wealth grow to in the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? 2. Based on your '#1 goal,' would this part of the initial wealth (investable amount) be adequate - using 'gut feelings - to achieve that goal? What if you were to combine more than 1 item? Which items? How would your numbers change? 3. Now review the above and after adjusting the 'gut' estimates - based upon your revised thoughts on how much you can afford to put towards the new investment. Make sure you explain in detail. 4. What $ amount would be available now to put towards achieving your '#1 goal? 5. Based on your #1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the average common stock (9%)? How much would the initial wealth grow to over the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? 6. Based on your '#1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the risk-free asset (3%)? How much would the initial wealth grow to in the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? 7. Based on your '#1 gcul' target $s needed required to achieve that goal, and, if you used the historical average return of the average common stock (9%), how much initial wealth is needed in the time horizon for your #1 goal? Compare to the revised $ investable amount from selling your item(s). Show your calculations following the examples in the Lecture Notes. What is your reaction? 8. Based on your '#1 goal' target $s needed required to achieve that goal, and, the revised $ investable amount from selling your item(s), what return do you need to match them in the time horizon for your #1 goal? Show your calculations following the examples in the Lecture Notes. What is your reaction? 6. Based on your '#1 goal,' would this revised $ investable amount be adequate to achieve that goal if you used the historical average return of the average common stock (9%)? How much would the initial wealth grow to over the time horizon for your #1 goal? Compare to the target $s needed. Show your calculations following the examples in the Lecture Notes. What is your reaction? #1 Goal= $250,000 Time to reach goal= 3 years Investable Amount= $25,000

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

The Mining Valuation Handbook Mining And Energy Valuation For Investors And Management

Authors: Victor Rudenno

4th Edition

0730377075, 978-0730377078

More Books

Students also viewed these Finance questions