Currently saving for the down payment

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1. You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $6,000 at the end of the first year, and you anticipate that your annual savings will increase by 10% annually thereafter. Your expected annual return is 6%. How much would you have for a down payment at the end of Year 3?

2. You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131972865

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