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INVESTMENT STRATEGIES As part of their investment strategy, the Carrington’s have decided to put
a. Determine the optimal investment strategy for the Carrington’s' investment of $100,000.
b. What profit can the Carrington’s expect to make on their investments over the year if they use their optimal investment strategy?
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Chapter 9 Solutions
Finite Mathematics for the Managerial, Life, and Social Sciences-Custom Edition
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- The percentage of individual investors’ portfolios committed to stock depends on the state of the economy. As of April 2014, a typical portfolio consisted of cash (19%), stocks (30%), stock funds (37%), bonds (8%) and bond funds (6%). The following table reports the percentage of stocks in a typical portfolio in eight quarters of 2012 to 2013. Year Quarters Stock % 2012 1 29.8 2012 2 31 2012 3 29.9 2012 4 30.1 2013 1 32.2 2013 2 31.5 2013 3 32 2013 4 31.9 In the first quarter of 2013 the seasonal index of approximately………………. means that values of the time series are …………… by the presence of seasonal forces. A. 100.8416, depressed B. 96.8555, stimulated C. 99.1586, depressed D. 103.2465, stimulatedarrow_forwardJ.Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter September (actual) October November December Credit sales Collections: Experience has shown that 40 percent of sales are collected in the month of sale, 50 percent are collected in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December). In month of sales One month after sales $ 62,000 $ 52,000 Total cash receipts 47,000 72,000 J. Lo's Clothiers September $ October November 0 $ December 0 $ 0arrow_forwardIf he allocates equal proportion to three stocks what would be his return?arrow_forward
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