Question
Can someone help me with these questions please Chris had $80,000 in investments at the beginning of the year that consisted of a diversified portfolio
Can someone help me with these questions please
- Chris had $80,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (30 percent); bonds (50 percent) and cash equivalents (20 percent). His returns over the past 12 months were 6 percent on stocks, 3 percent on bounds and 1 percent on cash equivalents.
a. What is Chris's average return for the year?
b. Calculate the amount of stocks, bonds and cash equivalents in his portfolio today.
2.Rebecca calculated that she needs a total of $1,400,000 at retirement (beyond pensions and Social Security). Rebecca is 34 years old, investing aggressively and expecting to earn 7% in her retirement account. She plans to retire at age 62.
a. How much does Rebecca need to save annually to achieve her goal?
b. Once in retirement, Rebecca would like annual retirement income of $70,000. She would like the savings to last for 25 years during retirement. Assuming that she could earn a 4% after-tax and after-inflation rate of return on their investments, did she save enough?
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