EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 5.A, Problem 5P
a)
Summary Introduction
To determine: Amount needed to accumulate the funds for annual investment in an equally weighted portfolio.
b)
Summary Introduction
To determine: Amount needed to accumulate the funds for annual investment in an equally weighted portfolio.
c)
Summary Introduction
To determine: Amount needed to accumulate the funds for annual investment in an equally weighted portfolio.
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Determine the annual investment in an equally weighted portfolio (50 percent common stock, 50 percent bonds) required to accumulate the funds, assuming that the first payment is made at age. In excel formula.
a. 30
b. 40
c. 50
Given information
Future Value 1,815,330.28
Interest .085
Age 30, number of years 35
1. You have invested 10000 euros in a fund in the first of January 2020. During the year you
apported and retired money as follows:
Date
Transaction
Initial value
Final value
01/01/2020
+10000
0
10000
31/03/2020
+5000
14000
19000
30/06/2020
-3000
19000
16000
30/09/2020
+4000
17000
21000
31/12/2020
-20000
20000
0
Compute the holding period return on this portfolio.
Given below is the information on various sets of investments.
Asset
Holding Period Return (HPR)
Holding Period
(%)
Unit Trust- ABP
28
3.5 years
RK Share
17
1 year
Real Estate
11
9 months
MAR Bonds
19
2.8 years
MNF Share
-2
3 months
Calculate the annualised holding period returns for each asset.
Based on your calculation of annualised holding period returns in (i) above, which asset would be the best choice for investment? Why?
Chapter 5 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 5.A - Prob. 1PCh. 5.A - Prob. 2PCh. 5.A - Prob. 3PCh. 5.A - Prob. 4PCh. 5.A - Prob. 5PCh. 5.A - Prob. 6PCh. 5 - Prob. 1QTDCh. 5 - Prob. 2QTDCh. 5 - Prob. 3QTDCh. 5 - Prob. 4QTD
Ch. 5 - Prob. 5QTDCh. 5 - Prob. 6QTDCh. 5 - Prob. 7QTDCh. 5 - Prob. 8QTDCh. 5 - Prob. 9QTDCh. 5 - Prob. 10QTDCh. 5 - Prob. 11QTDCh. 5 - Prob. 12QTDCh. 5 - Prob. 13QTDCh. 5 - Prob. 14QTDCh. 5 - Prob. 15QTDCh. 5 - Prob. 16QTDCh. 5 - Prob. 17QTDCh. 5 - Prob. 18QTDCh. 5 - Prob. 19QTDCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10PCh. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - Prob. 42PCh. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Prob. 45P
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