An investment advisor currently has two types of investments available for clients: a conservative investment A that pays 8% per year and investment B of higherrisk that pays 14%. Clients may divide their investments between the two to achieve any total return desired between 8% and 14%. However, the higher the desired return,the higher the risk. How should each client listed in the table invest to achieve the desired return?Client 1 Client 2 Client 3 k$21000 $40000 $31000 k,Annual Return Desired $2460 $3860 $3740 k2Total InvestmentHow much money should Client 1 invest in each account to achieved the desired return?Amount in investment A:Amount in investment B:How much money should Client 2 invest in each account to achieved the desired return?Amount in investment A:Amount in investment B:How much money should Client 3 invest in each account to achieved the desired return?Amount in investment A:Amount in investment B:

Investment means engaging your funds to generate profit in coming years. Investors invest in…

An investment advisor currently has two types of investments available for clients: a conservative investment A that pays 8% per year and investment B of higher risk that pays 14%. Clients may divide their investments between the two to achieve any total return desired between 8% and 14%. However, the higher the desired return, the higher the risk. How should each client listed in the table invest to achieve the desired return? Client 1 Client 2 Client 3 k Total Investment $21000 540000 531000 k, Annual Return Desired $2460 $3860 $3740 k2 How much money should Client 1 invest in each account to achieved the desired return? Amount in investment A: Amount in investment B: How much money should Client 2 invest in each account to achieved the desired return? Amount in investment A: Amount in investment B: How much money should Client 3 invest in each account to achieved the desired return? Amount in investment A: Amount in investment B:

An investment advisor currently has two types of investments available for clients: a conservative investment A that pays 8% per year and investment B of higher risk that pays 14%. Clients may divide their investments between the two to achieve any total return desired between 8% and 14%. However, the higher the desired return, the higher the risk. How should each client listed in the table invest to achieve the desired return? Client 1 Client 2 Client 3 k Total Investment $21000 540000 531000 k, Annual Return Desired $2460 $3860 $3740 k2 How much money should Client 1 invest in each account to achieved the desired return? Amount in investment A: Amount in investment B: How much money should Client 2 invest in each account to achieved the desired return? Amount in investment A: Amount in investment B: How much money should Client 3 invest in each account to achieved the desired return? Amount in investment A: Amount in investment B:

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Finance suppose you work for apple, inc. an American multinational technology company headquartered in Cupertino, California, as a financial analyst. You are provided with informaiton about three different investment oppotunities (Projects A, B, and C) that division managers believe are value-enhancing for the firm. The cash flows for each project are given below. As each project has the same risk, you may assume they all have a discount rate of 7.00% Determine The interenal rate of return of Project "C"
An individual with only $10,000 to invest is most likely better off investing in Select one: A. ETFs to increase the diversification. B. individual equities to increase portfolio efficiency. C C. individual bonds and individual equities to increase efficiency. D. mutual funds to increase the expected return. What is the correlation coefficient for two assets with a covariance of .0032, if asset 1 has a standard deviation of 12 per cent and asset 2 has a standard deviation of 9 per cent? Select one: C A. 0.3456 C B. 1.5980 C. 0.8721 D. 0.2963
Assume you have the following information with respect to the amount of investments you have, assigned to three portfolio managers who work for you: Manger A Manager B Manager C Amount of investment 10,000 15,720 30,500 Day of investment 5 February 18 March 20 April Market value of the investment at the end of the year 12,530 18,912 35,640 Assume the number of days in the year is 360 days whereas each month is 30 days You need to answer the following: The compound rate of return for each manager Your portfolio rate of return at the end of the year If you withdrew 4,500 at May 15th and 2,300 at Sept. 10th from your portfolio, what would be your portfolio rate of return at the end of the year?
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Unit 8-1
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You are a portfolio manager who uses options positions to customize the risk profile of your clients. In each case, what strategy is best given your client's objective? Required: a. • Performance to date: Up 16%. • • • © Client objective: Earn at least 15%. Your forecast: Good chance of major market movements, either up or down, between now and end of the year. b. Performance to date: Up 16%. • • © Client objective: Earn at least 15%. Your forecast: Good chance of a major market decline between now and end of year. a. What strategy is best given your client's objective? b. What strategy is best given your client's objective?
Subject name: Principles of Insurance and Risk Management, Answer it fast please.
You are an analyst for a large public pension fund and you have been assigned the task of evaluating two different external portfolio managers (Y and Z). You consider the following historical average return, standard deviation, and CAPM beta estimates for these two managers over the past five years: Portfolio Actual Avg. Retum Standard Deviation Beta Manger Y 10.20% 12009% 1.20 Manger Z 8.80% 9.90% 0.80 Additionally, your estimate for the risk premium for the market portfolio is 5.00 percent and the risk-free rate is currently 4.50 percent. For both Manager Y and Manager Z, calculate the expected return using the CAPM. Express your answers to the nearest basis point (Le., xx.xx96).
An investor has $80,000 to invest in Certificates of Deposit (CD) and a mutual fund. The CD yields 7% and the mutual fund yields 8%. The mutual fund requires a minimum investment of $8,000 and the investor requires at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in each to maximize the return? What is the maximum return? Show your work and explanations setting this problem up. Variables should clearly be defined. Show all your work.
please make the answer clear
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $120 Year 1 132 Year 2 146 Year 3 133 Year 4 128 Year 5 123 Required: a. Calculate the investment returns for each year. b. Compute the arithmetic mean return. c. Calculate the geometric mean return.

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