Question $15$

$5$ pts

On the basis of how long he has until retirement and his comfort with investment risk, Dan has decided that he wants to allocate the money in his retirement account as follows: $85\%$ to equities, $10\%$ to fixed income, and $5\%$ to cash. If Dan assumes that each asset class earns the low end of the historical average rates of return provided below, what overall rate of return would he expect to earn over the long term?

Equities: $8\%-12\%$

Fixed Income: $4\%-7\%$

Cash: $2\%-5\%$

$6\mathrm{.}80\%$

$4\mathrm{.}67\%$

$7\mathrm{.}30\%$

$8\mathrm{.}25\%$

$11\mathrm{.}15\%$