Henrietta Marston plans to retire in the year 2050. She is considering a fund that willbe more risk-oriented now and become increasingly conservative as she approachesretirement. Which of the following funds would you recommend to her?A) Regional fundB) Equity income fundOC) Sector fundOD) Fund of fundsE) Life-cycle fund

Retirement planning is the act of setting financial goals and making strategic decisions to ensure a…

Answered: retirement. Which of the following…

retirement. Which of the following funds would you recommend to her? A) Regional fund OB) Equity income fund OC) Sector fund OD) Fund of funds E) Life-cycle fund

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 6FPC

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Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friend’s trust fund payments. Present value and future value tables: https://openstax.org/books/principles-managerial-accounting/pages/time-value-of-money
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Viden, a financial advisor for high-net-worth individuals, is examining the portfolio of a client who has requested to reduce the risk of his portfolio which is currently populated only with stocks. The client needs an investment with regular cash flows to finance his daughter’s 4-year university education, as well as a short term fund to meet unexpected requirements in cash. (a) Determine what are the best asset classes to meet his needs, and discuss the reasons for your choice. (b) What will happen to the systematic risk of the client’s portfolio after the change?
Assume that your uncle gave you $50,000 to invest solely in mutual funds. Based on your point in the life cycle and your investment philosophy, identify your investment goals and explain how you would spread your money among different funds. Include the funds you would invest in, the amounts you would invest and explain why you selected these funds.
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