Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed

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

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

More Books

Students also viewed these Finance questions

Question

Define the term "Leasing"

Answered: 1 week ago

Question

What do you mean by Dividend ?

Answered: 1 week ago

Question

What is database?

Answered: 1 week ago

Question

What are Mergers ?

Answered: 1 week ago