Question
Can someone help???? Cassie is 35 years old. Her gross income is $72,000/year. She comes to you to get advice and learn more about her
Can someone help????
Cassie is 35 years old. Her gross income is $72,000/year. She comes to you to get advice and learn more about her investments. Cassie is like a lot of people in that she is actively investing for her future but is unclear how investments work.
Her holdings include:
Employer retirement account invested in a target date fund = $8,000
Stock A, a technology company
Current value = $1500; She bought it for $1300 three years ago. It doesn't pay any dividends
Stock B, a retail company
Current value = $800; She bought it 5 years ago for $950; It pays quarterly dividends
A bond mutual fund
Current value = $750; She bought it 7 years ago for $650
There are 5 questions to answer. 5 points each. Please show your work for the calculations for partial credit. Please number each answer.
1) For her non-retirement investments, what is her total return in dollars?
2) What is this as a rate of return (a percentage). Round to 2 decimal points.
3) She doesn't understand how the target date fund works. Please explain.
4) The bond mutual fund was her first investment. She wants to know if this is a good investment for her long term goals in 30 years. Please explain.
5) She sees one stock pays a dividend and one doesn't. She wants to know why this is.
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