Reasonable stock-to-bond ratio

Assignment Help Finance Basics
Reference no: EM13747448

How would the asset allocation differ between a 25 year-old who is saving for retirement and a 67 year-old who is beginning retirement?

Be sure to provide the following:

  • Give a reasonable stock-to-bond ratio for each investor.
  • Explain your allocation.

Focus your discussion on the following:

  • Asset allocation
  • Time horizon
  • Ability to assume risk
  • Earning capacity
  • Income needs

Reference no: EM13747448

Questions Cloud

Market price of the stock affected by the announcement : Some companies' debt-equity targets are expressed not as a debt ratio, but as a target debt rating on a firm's outstanding bonds. What are the pros and cons of setting a target rating, rather than a target ratio - How is the market price of the sto..
Determine the firm cash inflows and outflows : Determine the firm's cash inflows and outflows from purchasing the equipment and from leasing.
Analyze and rank the sources with regard to reliability : Using the Web and other venues of your choice, identify three to four sources of information for trend data about the subject you chose in Step 2. Analyze and rank the sources with regard to (1) Reliability, (2) Believability, (3) Pertinence to yo..
What is its internal rate of return : What is its internal rate of return and In capital budgeting, risk can be measured from three perspectives. What are those three measures of a project's risk
Reasonable stock-to-bond ratio : How would the asset allocation differ between a 25 year-old who is saving for retirement and a 67 year-old who is beginning retirement?
Explain working conditions experienced by women and children : This writing assignment explores the working conditions experienced by women and children after the depression of the 1890s.
Working capital and short-term financing : Determine the single greatest challenge to a small business' working capital. Identify at least two (2) methods this small business could use to address the identified challenge. Provide a rationale for each method that you identified.
Most recent annual reporting period : What are the company's total current liabilities at the end of the previous annual reporting period?
Define the evolution of project management : Define The Evolution of Project Management, Consider the future of project management and current trends in technology and business. Summarize your conclusions about how your chosen organization might improve its position through the use of projec..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the effective cost of factoring

The average credit sales for Jiffy Co. is $375,000. Accounts receivables average balance is $68,000. Jiffy factors its receivables by discounting them 3%. What is the effective cost of factoring?

  Determination of growth rate

Grateway Corporation has a weighted average cost of capital of 11.5%. Its target capital structure is 55 percent equity and 45% debt. The company has sufficient retained earnings to fund the equity portion of its capital budget.

  Calculate the mirr of the project using the discounting

1 garage inc. has identified the following two mutually exclusive projectsyear cash flow a cash flow b0 29700 297001

  The book value of the bond at the end of the fifth year is

an n-year 2000 par-value bond with 9 annual coupons has an annual effective yield of i i gt 0. the book value of the

  Compute the eac for both machines

For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $30,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute the EAC for both machines.

  Write your scholarly paper no less than 1000 words

write your scholarly paper no less than 1000 words excluding the title page bibliography and appendices. please e-mail

  What is the profit margin if the tax rate is 35 percent

tally ho inn has annual sales of 737000. earnings before interest and taxes is equal to 21 percent of sales. for the

  Problem on riskless security and advantage of debt financing

The semi-annual interest payments that company bonds in the U.S. typically pay are conventionally referred to as

  Projected return on investment

Develop a two-page analysis (excluding the title and reference pages) on the projected return on investment for your college education and projected future employment.

  Briarcrest condiments is a spice-making firm recently it

briarcrest condiments is a spice-making firm. recently it developed a new process for producing spices. the process

  Computation of value of the bond

Computation of value of the bond and what is the bond's price based on semi-annual compounding

  What is your expected starting salary

Without considering the additional educational years or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

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