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