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Sam is a 25-year-old doctor. She has been able to save $200,000. Based on advice from her parents she wants to invest all the money

Sam is a 25-year-old doctor. She has been able to save $200,000. Based on advice from her parents she wants to invest all the money now. Her hope is to not interfere with the investment until time to purchase her first home which she hopes to do at 35 years old.

The following information was retrieved from the four economies about the financial assets:

Economy

E(Ri)

i

Stocks

Bonds

Cash Equivalent

Stocks

Bonds

Cash Equivalent

China

25%

5.5%

3%

.50

.10

.02

Germany

18%

8%

5.5%

.20

.085

.03

Singapore

28%

6%

4%

.40

.15

.025

Trinidad and Tobago

32%

7.5%

4%

.25

.05

.008

  1. Calculate the following for the portfolio you have come up with for your investor:
    1. E(port);
    2. 2(port); and
    3. (port);

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