Reasonable given the historical record

Assignment Help Business Management
Reference no: EM132564738

Nelson has accumulated $168,000 in his retirement account. He is 65 years old and plans to retire this fall. He's trying to determine how much income he will have to live on during his retirement years. Nelson is a relatively conservative investor and has decided that he wants to keep his retirement funds invested 60 percent in long-term corporate bonds and 40 percent in stocks. He is estimating that he will earn an average annual rate of return of 12 percent. Is Nelson's expected rate of return reasonable given the historical record from 1926-2015? Justify your response.

Reference no: EM132564738

Questions Cloud

Changing the credit term for customers : Dyson is considering changing the credit term for its customers and also enforcing its credit policy more strongly. Dyson's annual
Find today value of miliken advisory corporate : (a) Find today's value of Miliken Advisory's corporate bond and common stock.
Distinguish between prime costs and conversion costs : Name the three inventory accounts for a manufacturing business and describe what each balance represents at the end of an accounting period.
Determine which of the statement are true regarding the cost : Salaries for other employees, who have formal one-year employment contracts. Which of the following statements are true regarding these costs?
Reasonable given the historical record : Nelson has accumulated $168,000 in his retirement account. He is 65 years old and plans to retire this fall. He's trying to determine
Explain how the use of the current rate method : The parent uses the current rate method to compute the cumulative translation adjustment.
Investment advisor that laduma co : You are told by your investment advisor that Laduma Co is expected to earn R5 per share next, R6 per share the following
Which are examples of sales-oriented decisions : Find Which are examples of sales-oriented decisions? Accept a special order/ Change the price/ Make or buy/ Bundle products.
Determining the expected market return : You are considering the purchase of real estate that will provide perpetual income that should average $56,000 per year.

Reviews

Write a Review

Business Management Questions & Answers

  Understanding an organization strengths

An important part of planning is a SWOT analysis, understanding an organization's strengths, weaknesses, opportunities, and threats.

  Strategies for managing disagreements

The authors of the "Want Collaboration?" article (located in Day 6 of this week) identify three strategies for managing disagreements at the point of conflict.

  Illustrate what point does the risk of loss of goods pass

At illustrate what point does the risk of loss of goods pass from seller to the buyer. A contract between Kwik Import Corporation in Los Angeles and Macro Retail Corporation in New York.

  What is the probability that exactly 4 of the resumes

Thirty percent of all resumes received by a corporation for a management position are from females. Ten resumes will be received tomorrow.

  Maintaining its current equity and net income

Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income. Which of the following will not change.

  Weight of ants really follow a normal distribution

The normal distribution- do natural phenomena such a hemoglobin or weight of ants really follow a normal distribution? Why or why not?

  How will you sell the product in that country

What is the product that you plan to sell? -  What foreign country do you plan to target?  -  How will you sell the product in that country?

  Determine the performance of the administrative system

Use monitoring and research skills to determine the performance of the administrative system and its users, and identify changing needs of the business.

  Leadership and organizational effectiveness with modern

How does "The Level 5 Leader" play a role in leadership and organizational effectiveness with modern businesses

  Cell division in prokaryotic organisms

Binary fission is cell division in prokaryotic organisms (bacteria) which have no nucleus.

  Explain the difference between good and bad table

Explain the difference between good and bad table structures. How do you recognize the difference between good and bad structures? What role does normalization play in good and bad table structures, and why is normalization so important to a good tab..

  Custom producer of industrial wire products

Wireway-located in Ft. Worth, Texas-is a custom producer of industrial wire products. The company has a lot of experience bending wire into many shapes and also can chrome- or gold-plate finished products.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd