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Exercise IV Market Direction Alternatives 50% (Increase) 30% (Stable) 20% (Decrease) Stock $1,500 $300 -$800 Mutual Fund $900 $600 -$200 |CD $500 $500 $500

Exercise IV Market Direction Alternatives 50% (Increase) 30% (Stable) 20% (Decrease) Stock $1,500 $300 -$800 Mutual Fund $900 $600 -$200 |CD $500 $500 $500

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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# Exercise IV This table demonstrates various investment alternatives and their corresponding outcomes based on different market conditions. The table evaluates three investment options: Stock, Mutual Fund, and Certificate of Deposit (CD), under three market scenarios: a 50% market increase, a 30% stable market, and a 20% market decrease. Each scenario presents the potential financial result for each investment option. ### Market Direction 1. **50% (Increase) - Yellow Section:** - **Stock:** $1,500 - **Mutual Fund:** $900 - **CD:** $500 2. **30% (Stable) - Green Section:** - **Stock:** $300 - **Mutual Fund:** $600 - **CD:** $500 3. **20% (Decrease) - Red Section:** - **Stock:** -$800 - **Mutual Fund:** -$200 - **CD:** $500 The chart helps in assessing the risk and expected return for each investment alternative under varying market conditions. © 2011 Pearson Education, Inc. publishing as Prentice Hall.
Transcribed Image Text:# Exercise IV This table demonstrates various investment alternatives and their corresponding outcomes based on different market conditions. The table evaluates three investment options: Stock, Mutual Fund, and Certificate of Deposit (CD), under three market scenarios: a 50% market increase, a 30% stable market, and a 20% market decrease. Each scenario presents the potential financial result for each investment option. ### Market Direction 1. **50% (Increase) - Yellow Section:** - **Stock:** $1,500 - **Mutual Fund:** $900 - **CD:** $500 2. **30% (Stable) - Green Section:** - **Stock:** $300 - **Mutual Fund:** $600 - **CD:** $500 3. **20% (Decrease) - Red Section:** - **Stock:** -$800 - **Mutual Fund:** -$200 - **CD:** $500 The chart helps in assessing the risk and expected return for each investment alternative under varying market conditions. © 2011 Pearson Education, Inc. publishing as Prentice Hall.
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