Calculate the amount invested in treasury bonds, Financial Management

You have an investment capital of $1,000,000.  You plan to invest a portion of this money in Treasury bonds and the remainder in a stock portfolio.  Treasury bonds are expected to yield 2% per year whereas the stock portfolio is expected to return 6% per year.  Your goal is to achieve an overall portfolio return of 5% on your total investment of $1,000,000.  Show the dollar amount you will invest in Treasury bonds.

            ANSWER:  Amount invested in TBs ________________________

 

Posted Date: 2/28/2013 4:42:49 AM | Location : United States







Related Discussions:- Calculate the amount invested in treasury bonds, Assignment Help, Ask Question on Calculate the amount invested in treasury bonds, Get Answer, Expert's Help, Calculate the amount invested in treasury bonds Discussions

Write discussion on Calculate the amount invested in treasury bonds
Your posts are moderated
Related Questions
how would you judge the potential profit of bajaj electronics on the first year of sales to booth plastics and give your views to increase the profit ?

a) On 1 st January 2010, Grimm issued 400,000 convertible £1 6% debentures  for £600,000.  The professional fees associated with the issue were £40,000 and the fair value of simil

Types of financial incentive schemes Performance associated pay (PRP) systems e.g. piecework or sales commission Bonuses e.g. supplementary payments for targets or ai

Illustrate the term quality of benefits It is clear from Table that total returns associated with two alternatives are identical in a normal situation but range of variati

Several overseas factors are subsidiaries of UK banks or their agents who offer facilities to companies with export credit sales usually of above £0.25m. Overseas factors carry out

Q. Observation of capital structure? Droxfol Co has long-term funding provided by ordinary shares preference shares and loan notes. The rate of return necessary by each source

I nvitation of bids and bid publicity In previous sub section we learnt how the bid capacity for works and goods are calculated. We discussed how to prepare the bid documents,

For a specified IOS and MCC, how do financial managers decide that which proposed capital budgeting projects to accept, and which to reject? For a specified IOS and MCC, all inde

The first involved the creation of spreadsheets to resolve some problems for an organization. You will need to model the problem roughly before you start to spreadsheet and you wil

Role of Sponsor In the establishment of mutual fund trust, the main role is played by the sponsors. Both the trustees and the fund managers or the asset management company have