you have total portfolio $500,000 that is to be invested in certificates of deposit that pay simple annual interest of 2.5%, municipal bonds that pay simple annual interest of 10%, blue chip stocks that you expect to return 12% annually, cryptocurrency that you expected to return 18% annually. You want a combined annual return of 10% annually and you want one quarter of them invested in stocks and crypto. How much should be put in each type of investment

you have total portfolio $500,000 that is to be invested in certificates of deposit that pay simple annual interest of 2.5%, municipal bonds that pay simple annual interest of 10%, blue chip stocks that you expect to return 12% annually, cryptocurrency that you expected to return 18% annually. You want a combined annual return of 10% annually and you want one quarter of them invested in stocks and crypto. How much should be put in each type of investment

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

If you take out a short-term loan for $800 at 250% interest for 11 weeks, how much interest will you end up paying? (Please write out the finance formula used with the proper information representing the corresponding variables in one line, the answer to your question in another)
Hector has several financial decisions to make in the near future. He is planning to buy a car, open a savings account, and place money in a certificate of deposit (CD) so that he may purchase a boat when he retires. Hector has asked that we help him decide which options are best for him. The car Hector has chosen costs $24,000. Most car loans are calculated using simple interest, a method which interest is calculated only one per year. His first option is a loan with 3% interest over six years. How much will Hector pay over the course of the next six years if he chooses this option?
6 Janis wishes to invert 7500 into two accounts One account earns 41. annually while the other earns 8% annually. How much should be invested. into each account to each $400 in Foral interest after lone year? Assume simple interest.
A city is spending $19.3 million on a new sewage system. The expected life of the system is 40 years, and will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.8 million per year. If the city's MARR is 7% per year, what is the capitalized worth of the system? The study period is 100 years. The capitalized worth of the system is $ million (Round to two decimal places.)
Leonard started a systematic investment program by buying $400.00 worth of mutual funds on the first day of every month starting on February 1. Mutual funds are purchased in units. Leonard purchased as many units as he could with his $400.00, including fractions of units. Unit prices for the first six months were $10.00, $10.80, $11.50, $9.75, $9.40, and $12.15 respectively. Complete parts (a) through (d) below. (a) What is the simple average of the unit prices? $ (Round to the nearest cent as needed.) (b) What is the total number of units purchased during the first six months? units (Round to three decimal places as needed.) (c) What is the average cost of the units purchased? $ (Round to the nearest cent as needed.) (d) What is the value of Leonard's mutual fund holdings on July 31 if the unit price is $11.90 on that date? $4 (Round to the nearest cent as needed.)
At the end of 2009, right after the great recession of 2008-2009, business partners Mario and Luigi sold their plumbing business and retired. Each of them received $1,000,000 net from the sale. Mario holds an undergaduate business degree and understands risk, return, and divesification. He decides to invest his 1M$ in SPY ETF (essentially a stock that tracks the S&P 500 index performance). Luigi comes from a low income family and could not afford to go to college. He doesn't understand finance and he fears risk, so he decides to put his money in a bank savings account. The average S&P500 annual return from 2010 to 2019 has been 11.3%, the average annual return on a standard savings account has been 0.1% over the last 10 years. What is the difference in FV value (end of 2019) between Mario and Luigi investment holdings?
A certificate of deposit (CD) is similar to a savings account, but deposits are generally held to maturity. They usually offer higher rates than savings accounts because they "tie up" money for a period of time and often require a minimum deposit. A 3-year CD at a certain bank has a nominal rate of 2.085%, and an effective annual yield of 2.100%. If $800 is deposited with this bank, how much will be in the account at the end of the 3 years?