INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 28, Problem 2PS
A
Summary Introduction
To explain: Least risky asset to invest for a child.
Introduction: Long term investment in this case gives large amount of return after the completion of maturity period.
B
Summary Introduction
To explain: Least risk asset of the pension fund for 10 years.
Introduction: Bond portfolio is used to invest for a long term. This provides a higher return after the maturity period and value is not affected by the interest rate.
C
Summary Introduction
To explain: Investment in a pension fund with the protection of inflation.
Introduction: Treasury inflation is used to invest for the 10 years investment for a pension holder person. This gives a high return after maturity period.
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