What is the quarterly expected return for investment b

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Reference no: EM132033893

You own two investments, A and B, that have a combined total value of 64, 462 dollars.

Investment A is expected to make its next payment in 1 month. A's next payment is expected to be 358 dollars and subsequent payments are expected to grow by 0.43 percent per month forever. The expected return for investment A is 1.04 percent per month.

Investment B is expected to pay 209 dollars each quarter forever and the next payment is expected in 3 months.

What is the quarterly expected return for investment B? Answer as a quarterly rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM132033893

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