Question
The chief financial planner in our office wants to promote a new conservative income producing investment vehicle. His 2.16% forecast of bonds he considers to
The chief financial planner in our office wants to promote a new conservative income producing investment vehicle. His 2.16% forecast of bonds he considers to be quite stable. However, the 6.67% forecast for REITs may vary down by 2.82% and up by 2.10%. The corporate forecast for NYSE dividends is given to us a 0.38%, but he considers a more reasonable yields to be lower by 2.64% with a worst case scenario lower by a total of 2.00%. Finally our NASDAQ estimated yield is 0.41% with a possible increase of 0.23% and a decrease of 2.28%. What is the best-case scenario for the average yield of this portfolio assuming all four items are weighted equally?
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