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need to solve both questions and if both correct, I will give thumb You bought one of Rocky Mountain Manufacturing Co.'s 9 percent coupon bonds
need to solve both questions and if both correct, I will give thumb
You bought one of Rocky Mountain Manufacturing Co.'s 9 percent coupon bonds one year ago for $1,054.80. These bonds make annual payments and mature seven years from now. Suppose that you decide to sell your bonds today, when the required return on the bonds is 8.5 percent. If the inflation rate was 4.4 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Total real return You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12 percent. Assume D has an expected return of 15.5 percent, F has an expected return of 11.4 percent, and the risk-free rate is 6.25 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount of Stock F to buyStep by Step Solution
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