What is stacey specific investment goal

Assignment Help Finance Basics
Reference no: EM133332008

Question: Stacey Derringer is divorced and has two sons, ages five and six. Her ex-husband is paying $100 per child per week in child support. Now that her sons are in school full-time, Stacey has returned to work as an office manager with a salary of $50,000 per year. Since her income is enough to support the family, she has decided to put the child support money in a college fund for the boys. For the last year, she's been depositing the money into a savings account, earning only 1 percent annual interest, and she's accumulated $10,600. She realizes she needs to invest this money to earn a better return.

What is Stacey's specific investment goal, and what types of mutual funds might be appropriate to meet this goal?

 

Reference no: EM133332008

Questions Cloud

Discuss any changes in the yield curve : Discuss any changes in the yield curve Explain the changes in part 2) by reading some news articles
What is the required rate of return for this firm : Assume risk free rate is 3%, market return is 5%, and firm A has a beta of 1.55. What is the required rate of return for this firm? Round the final answer
What is the beta of this portfolio : An investor creates a portfolio from stock A and stock B where she invests 0.50 of her wealth in stock A and 0.50 of her wealth in stock B. Stock A has a beta
How would you make the portfolio delta and gamma neutral : Write down a quadratic approximation to the option portfolio price change as a function of delta, gamma, and the change in the stock portfolio
What is stacey specific investment goal : What is Stacey's specific investment goal, and what types of mutual funds might be appropriate to meet this goal?
What are the penalties for not reporting this transaction : Should Hanna report this transaction? If you select A, What are the penalties for not reporting this transaction? Hanna works as a teller a bank.
Self-control affect our emotional responses : In what ways can adding patience and self-control affect our emotional responses? Class, what are your thoughts?
The story of adam and eve and fall of human nature : The story of Adam and Eve and the fall of human nature. Is this characterization of human nature accurate?
Experience governmental interference in religion : In the United States, we enjoy separation of church and state. Nevertheless, we still experience governmental interference in religion

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the bond price

Morin Company's bonds mature in 6 years, have a par value of $1,000, and make an annual coupon interest payment of $85. The market requires an interest rate of

  What is the expected selling price of each bond

Your investment banking firm has estimated what your new issue of bonds is likely to sell for under several different economic conditions. What is the expected (average) selling price of each bond?

  Maturity risk premium for the 2-year security

A 2-year Treasury security yields 9.25%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.

  How many shares of stock will you receive

How many shares of stock will you receive if you convert all of your bonds?

  What is the firm total book value

What is the firm's total book value? What would its book value per share be if the firm had 100 million shares of common stock outstanding

  What are some considerations a company should take

What are some considerations a company should take into account when establishing dividend policy?

  How much will you have at the end of the 24 years

You are offered an investment plan that will pay you 6 percent per year for the next 12 years and 10 percent per year for the last 12 years.

  Does the federal reserve directly set the federal funds

does the federal reserve directly set the federal funds interest rate? how does the fed influence this

  What is the dividend yield

The dividend is expected to grow at 2.88% each year. If the stock is currently selling for $26.35, what is the dividend yield?

  What will be ttc dividend yield and capital gains

What will be TTC's dividend yield and capital gains yield once its period of supernormal growth ends?

  Capital budgeting analysis

The firm can sell the used equipment today for $6,100, and its tax rate is 40%. What is the equipment's after-tax salvage value for use in a capital budgeting

  Does this price present an opportunity for arbitrage

A one month European call option is currently selling for $3.90. The exercise price of the option is $40, and the current stock price is S0 = $43.

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