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That is the only information given Question 44 of 50 -/2 Current Attempt in Progress Edward and Ruth, who are both age 30. got married
That is the only information given
Question 44 of 50 -/2 Current Attempt in Progress Edward and Ruth, who are both age 30. got married last month. Now that they're married and building a household together, they're beginning to think more seriously about investments and retirement planning, Edward's financial risk tolerance is on the high end of the moderate range. Ruth, on the other hand, has a relatively low level of financial risk tolerance. When faced with a saving or investment decision, she would prefer to stick with a sure thing rather than take an unnecessary risk. She knows, however, that to reach their joint financial goals that they, as a couple, will need to coordinate their investment decisions and be willing to take more risk. They decided that they would try to obtain a long-term average rate of return of 8%. Based on this information and what you know of Edward and Ruth, answer the following questions. Edward and Ruth recently opened a joint online brokerage account. The account is titled JTWROS. Tarek has identified four stocks that he's interested in buying. Information about the four stocks is shown here. Use this information to compute the value of all four stocks and determine which of these stocks is a bargain according to the discounted dividend valuation model (Round "Value" answers to 2 decimal places, e.g. 52.25.) Stock A Stock B Stock Dividend $0.55 $0.94 Dividend Growth Rate 4.40 % 1.90 % Current Price $19.50 $14.90 $44.00 $2.59 3.40 Value $ M Is the Stock a Bargain? 03 Qu Me Question 44 of 50 -12 Ruth isn't excited about individual stock ownership because she and Tarek will not be sufficiently diversified. She convinced Edward that they should instead purchase mutual funds that invest in stocks. They identified the following four mutual funds, each of which invests in large-company stocks. The two passive funds seek to track the S&P 500 Index. Assuming similar risks across the funds, which of the four mutual funds would be the best purchase? Why? Fund A Fund B FundC Fund D Management Approach Active Passive Passive Active Annual Expense Ratio 1.55% 0.40% 0.35% 1.30% Max Sales Load 5.50% 0.00% 0.00% 3.95% Assume that Ruth begins contributing $2,900 per year into a retirement investment account. If she can earn an average annual return of 8% on her investment how much will she have accumulated at ape 70? (Round answer to nearest whole number) She will accumulates in the account os Qu Step by Step Solution
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