The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year. Introduction: The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Question

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Answer 1

Question

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

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Answer 2

Question

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

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Answer 3

Question

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

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Answer 4

Question

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

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Answer 5

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

Answer 6

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

Answer 7

Chapter 3, Problem 1PA

Summary Introduction

To calculate:

The number of years to earn one million on investing $250,000 in diversified equity portfolio returning 8 percent per year.

Introduction:

The diversified equity portfolio can be referred to the collection of number of equity shares from different companies. The portfolio is made up of different equity shares which provides different rate of return to reduce the risk and maximize the return from investment.

Answer 8

Expert Solution & Answer

Answer to Problem 1PA

Solution:

The number of years to earn $1,000,000 by investing $250,000 in diversified equity portfolio returning 8% is 18.012 years.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Given,

Investment in the diversified equity portfolio is $250,000.

Return on investment is 8%.

Required return from investment is $1,000,000.

The calculation of number of years on spreadsheet is,

Particulars	Amount ($)
Future Value	1,000,000
Present Value	250,000
Rate of Interest (%)	0.08
Number of Years	18.01293668

Table (1)

The number of years is 18.012 years.

Answer 12

Ch. 3 - Prob. 1PA Ch. 3 - Prob. 2PA Ch. 3 - Prob. 3PA Ch. 3 - Prob. 4PA Ch. 3 - Prob. 5PA Ch. 3 - Prob. 6PA Ch. 3 - Prob. 7PA Ch. 3 - Prob. 8PA Ch. 3 - Prob. 9PA Ch. 3 - Prob. 10PA

Answer to Problem 1PA

Explanation of Solution

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Chapter 3 Solutions