Enable michele to achieve her investment requirement

Assignment Help Financial Management

Reference no: EM13808257

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 have expected returns of 0.08 and 0.08 per year, respectively, then what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

Reference no: EM13808257

Questions Cloud

Prepare an income statement for krugpark in good form : KrugPark produces a popular beverage called odes us which sells for $97 a case. Last year KrugPark sold 170,000 cases, each of which costs $50 to produce. KrugPark incurred selling and administrative expenses of $670,000 and depreciation expense of $..

What is the outstanding balance at the end of ten years : Your firm has borrowed $15 million from a bank under the following terms: Payments are to be mode end of every quarter for next 25 years. Interest rate is 8.4% compounded quarterly. Prepare an amortization table using XL. What is the outstanding bala..

Why projects and project management are important : Why projects and project management are important. How have you seen projects used in your personal life? Did the approach work? Why or why not?

Reflection on diversity : Reflection on Diversity

Enable michele to achieve her investment requirement : In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

Explain how the nomination and appointment of federal judges : Explain how the nomination and appointment of federal judges differs from Supreme Court Justices. As well, explain how does the selection and length of terms differs between Supreme Court Justices and members of Congress

Invests the amount saved in income taxes : Twins Invest. Kathryn Ake, of Omaha, Nebraska, plans to invest $3000 in mutual fund for the next 25 years to accumulate savings for retirement. Her twin sister, Kristin, plans to invest the same amount for the same length of time in the same mutual f..

How to implement an environment of diversity : How to implement an environment of diversity - Tension between personal standards and the goals of the organization.

Use case dependency for making an account deposit : Describe (in a one to two (1-2) page narrative) a use case dependency for making an account deposit. Illustrate this use case with Visio or a similar product

User Account

All Pages