Investor wants an annual return

Assignment Help Business Economics
Reference no: EM132006494

An investment firm recommends that a client invest in bonds rated? AAA, A, and B. The average yield on AAA bonds is 4?%, on A bonds 5?%, and on B bonds 8?%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following? conditions?

A. The total investment is ?$27,000 and the investor wants an annual return of ?$1,410 on the three investments.

B. The values in part A are changed to ?$44,000 and ?$2,300?, respectively.

Reference no: EM132006494

Questions Cloud

What is the expected price of stock : Expected constant growth rate (g) = 5%. What is the expected price of the stock? A debenture is:
Describe the differences in establishing the later colonies : Describe the differences in establishing the later colonies of PA, NJ, NY and Carolinas as opposed to the earlier colonies of MA and VA
What role conflicts do forensic psychology professional face : What role conflicts do forensic psychology professionals face while providing treatment in penal institutions? Apply APA standards to citation of sources.
Measures for a successful revenue cycle process : What is the revenue cycle and why is it important to healthcare organizations? Please include key measures for a successful revenue cycle process.
Investor wants an annual return : A. The total investment is ?$27,000 and the investor wants an annual return of ?$1,410 on the three investments.
What is dividend growth rate implied by these numbers : Assume that the stock is priced in equilibrium, what is the dividend growth rate implied by these numbers?
Define types of intervention and treatment approaches : Several types of intervention and treatment approaches have been presented in your course textbook. In addition, evidence-based treatment programs.
What is the standard deviation of portfolio : If you invest $2,000 and $8,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?
Complete the english language proficiency chart : Select one ELP standard from each strand (speaking, listening, reading, and writing) from your state department website, record the standard in the chart

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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