To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him. Introduction: Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Question

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Answer 1

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

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Answer 2

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

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Answer 3

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

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Answer 4

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

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Answer 5

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Answer 6

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Answer 7

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Answer 12

Ch. 19.2 - Prob. 1TP Ch. 19.2 - Prob. 2TP Ch. 19.3 - Prob. 19.3AQ Ch. 19.3 - Prob. 4TP Ch. 19.3 - Prob. 5TP Ch. 19.4 - Prob. 6TP Ch. 19.4 - Prob. 7TP Ch. 19.4 - Prob. 8TP Ch. 19.4 - Prob. 9TP Ch. 19.5 - Prob. 1MED

Solution Summary: The author explains how an individual should invest in financial schemes, property, stocks, or property with the expectation of achieving a return on it.

Explanation of Solution

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Chapter 19 Solutions