⦁ As a financial planner, based on the following information given by your client. ⦁ Annual Savings to IRA - $5,000 ⦁ Investment Balance (beginning of the year) - $70,000 ⦁ Net Worth (beginning of the year) - $800,000 ⦁ IRA Balance (beginning of the year) - $65,000 ⦁ Investment Balance (end of the year) - $81,300 ⦁ Net Worth (end of the year) - $970,000 ⦁ IRA Balance (end of the year) - $72,000 Calculate the following ratios, and comment on if they are within the normal range. a. The return on investments ratio =? b. The return on the IRA ratio =? c. The return on net worth ratio =?
⦁ As a financial planner, based on the following information given by your client. ⦁ Annual Savings to IRA - $5,000 ⦁ Investment Balance (beginning of the year) - $70,000 ⦁ Net Worth (beginning of the year) - $800,000 ⦁ IRA Balance (beginning of the year) - $65,000 ⦁ Investment Balance (end of the year) - $81,300 ⦁ Net Worth (end of the year) - $970,000 ⦁ IRA Balance (end of the year) - $72,000 Calculate the following ratios, and comment on if they are within the normal range. a. The return on investments ratio =? b. The return on the IRA ratio =? c. The return on net worth ratio =?
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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⦁ As a financial planner, based on the following information given by your client.
⦁ Annual Savings to IRA - $5,000
⦁ Investment Balance (beginning of the year) - $70,000
⦁ Net Worth (beginning of the year) - $800,000
⦁ IRA Balance (beginning of the year) - $65,000
⦁ Investment Balance (end of the year) - $81,300
⦁ Net Worth (end of the year) - $970,000
⦁ IRA Balance (end of the year) - $72,000
Calculate the following ratios, and comment on if they are within the normal range.
a. The
b. The return on the IRA ratio =?
c. The return on net worth ratio =?
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