Enable michele to achieve her investment requirement

Assignment Help Financial Management
Reference no: EM13879702

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.10 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 have expected returns of 0.08 and 0.09 per year, respectively, then what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

Reference no: EM13879702

Questions Cloud

How many of type should be made daily to maximize net profit : If each SUV sold results in a $2,000 loss but each sedan produces a $5,000 profit, how many of each type should be made daily to maximize net profits?
Considering the buyout of an existing publicly traded : For this discussion, assume that you are an investor and considering the buyout of an existing publicly traded company. There are several areas you plan to focus on during your due diligence process in order to determine the organization's potential ..
Calculate the value of bond : A bond of the Eastold Corporation pays an 11% coupon and has a $1000 par value. The coupon is paid semi-annually (twice a year). The bond matures in 10 years. The market's required yield to maturity on a comparable-risk bond is 9%. Calculate the valu..
Explain what these sensory deficits : Ms. Carter suffered a head injury in a motor vehicle crash. She injured her right ear, her right occipital lobe, her right temporal lobe, and parts of her diencephalon. She has the following sensory deficits: hyposmia, inability to hear high-frequenc..
Enable michele to achieve her investment requirement : In order to fund her retirement, Michele requires a portfolio with an expected return of 0.10 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..
The functional unit of the kidney : The functional unit of the kidney is known as? A. Medulla         B. Glomerulus   C. Pyramid     D. Nephron
Returns and probabilities for the three possible states : Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.13 and 0.16, respective..
Consider a perpetuity-due with first payment : Consider a perpetuity-due with a first payment of 5000 at time 0 and each subsequent payment decreases by 9%. Find the PV of this perpetuity at time 0 given an annual effective rate of interest i=2%.
Graph the feasible region for this problem : The boss tells you that he doesn't want more than 15 TV commer- cials because he gets sick of watching the same thing over and over again. The objective is to find the combination of TV (x) and radio (y) commercials that maxi- mize the sale of mil..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the rate of return on the fund

Consider a mutual fund with $640 million in assets at the start of the year, and 4 million shares outstanding. If the gross return on assets is 15% and the total expense ratio is 5% of the year end value, what is the rate of return on the fund?

  Why bonds are known as fixed income securities

Which of these statements answers why bonds are known as fixed income securities?

  What is value of firm-debt with both a book and face value

The Montana Hills Co. has expected earnings before interest and taxes of $8,100, an unlevered cost of capital of 11%, and debt with both a book and face value of $12,000. The debt has an annual 8% coupon. The tax rate is 34%. What is the value of the..

  Should langley replace its trade credit with the bank loan

What is the amount of costly trade credit and what is the approximate annual cost of the costly trade credit and should Langley replace its trade credit with the bank loan

  What is the expected capital gains yield

Bond P is a premium bond that carries a 10% coupon rate. A separate bond-Bond D is a discount bond and has a 4% coupon rate. Each of these bonds makes an annual payment (not semi annual) and has a 7% YTM with 10 full years until they mature. Assume t..

  Paper on future generation telecommunication technology

paper on future generation telecommunication technology technology that is extending the functionality and lowering the

  Organisations behaviour is guided by financial data in the

organisations behaviour is guided by financial data. in the short term such data will help determine operational

  Present value of this cash flow pattern

You have been offered the opportunity to invest in a project that will pay $1,935 per year at the end of years one through three and $13,979 per year at the end of years four and five. If the appropriate discount rate is 20.0 percent per year, what i..

  Self-employed person deposits

A self-employed person deposits $1,250 annually in a retirement account that earns 5.5%. What will be the account balance at age 62 if the savings program starts when the individual is age 50?

  Stock dividend-dividend is paid

An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,200. ABC declares a 20% stock dividend. After the dividend is paid, John owns____________

  What is bobs gross income

What is Bob's GROSS INCOME from this information? This is an accounting question. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to ..

  Total return to ahmed from owning the stock

Ahmed purchased a stock for $45 one year ago. The stock is now worth $65. During the year, the stock paid a dividend of $2.50. What is the total return to Ahmed from owning the stock?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd