Fund X Return % Fund Y Return% 15 8 24 11 -3 6 5 9 5 20 -2 6 -2 14 7 13 12 4. Make a decision table using the calculations above. Which investment will the advisor recommend if his client is near retirement Years 1 2 3 4

Fund X Return % Fund Y Return% 15 8 24 11 -3 6 5 9 5 20 -2 6 -2 14 7 13 12 4. Make a decision table using the calculations above. Which investment will the advisor recommend if his client is near retirement Years 1 2 3 4

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section13.6: Creating Your Own Investment Plan

Problem 1CC

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Concept explainers

Emergency Fund

The emergency fund is an amount that is kept aside to meet financial emergencies such as medical expenses and debt settlements. Emergency funds reduce the burden on people during their hardships. People save small portions of their earnings or paychecks as emergency funds to meet financial emergencies. Emergency funds should be saved or invested in such a way that they must be easily liquidated during emergencies. The main purpose of an emergency fund is its availability when required.

Question

Years
1
2
3
4
5
6
14
7
13
12
4. Make a decision table using the calculations above. Which investment will the advisor
recommend if his client is near retirement
Fund X Return %
15
24
-3
5
20
-2
Fund Y Return %
8
11
6
9
-2

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