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Mark, Blinken, and Betty are triplets, but they have very different attitudes toward investing. Five years ago, each began an investment program with $14,000. Mark,
Mark, Blinken, and Betty are triplets, but they have very different attitudes toward investing. Five years ago, each began an investment program with $14,000. Mark, a risk taker, invested the entire amount in a high-growth stock mutual fund. Blinken is extremely conservative and invested his $14,000 in a high-grade, low-risk, corporate bond fund. Betty took a personal finance class in college, so she's invested half her money in the stock fund and half in the bond fund. Taking into account both income and growth, the after-tax annual returns on the funds over the last five years have been as follows: Year Stock Fund (%) Bond Fund (%) 50/50(%) 1 5 8 6.5 2. 2 -8 10 1.0 3 18 2 10.0 -3 2.0 un 25 4 14.5 (21) What was the average annual return for each fund and for the 50/50 combination? (Round answers to 1 decimal place, eg. 52.5.) Stock fund % % Bond fund 50/50 fund de % Which one was riskiest? 50/50 fund Bond fund Stock fund id Media
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