Assume that George Mason Medical Center had investments in a Building Replacement Fund with the following balances as of 9/18/19 listed by category. The Investment Committee of the Board has approved a recommendation as to how to allocate these funds. Assume that the portfolio was rebalanced on October 1, 2019 to equal the Board's target allocation, and that the investment balances in total on October 1st equaled the $72,250,000 noted on the schedule. Also assume that the following interest and dividend annual percentage rates that are expected to be earned from October 1 to December 31 for these investment categories: Expected Interest and Dividend Rate 0.4% 4.3% Description Balance as of Future Desired 9/18/19 $ 4,385,000 28,685,000 13,051,000 11,226,000 4,395,000 3,525,000 6,983,000 Allocation 4.0% 40.0% 18.0% Cash Fixed Income Large Cap Value Large Cap Growth Mid/Small Cap Value Mid/Small Cap Growth International Equity Emerging Markets Equity Total 1.8% 20.0% 5.0% 1.2% 0.8% 0.2% 5.0% 6.0% 2.0% 100.0% 2.1% 0.7% $72,250,000 Average ?
Assume that George Mason Medical Center had investments in a Building Replacement Fund with the following balances as of 9/18/19 listed by category. The Investment Committee of the Board has approved a recommendation as to how to allocate these funds. Assume that the portfolio was rebalanced on October 1, 2019 to equal the Board's target allocation, and that the investment balances in total on October 1st equaled the $72,250,000 noted on the schedule. Also assume that the following interest and dividend annual percentage rates that are expected to be earned from October 1 to December 31 for these investment categories: Expected Interest and Dividend Rate 0.4% 4.3% Description Balance as of Future Desired 9/18/19 $ 4,385,000 28,685,000 13,051,000 11,226,000 4,395,000 3,525,000 6,983,000 Allocation 4.0% 40.0% 18.0% Cash Fixed Income Large Cap Value Large Cap Growth Mid/Small Cap Value Mid/Small Cap Growth International Equity Emerging Markets Equity Total 1.8% 20.0% 5.0% 1.2% 0.8% 0.2% 5.0% 6.0% 2.0% 100.0% 2.1% 0.7% $72,250,000 Average ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Compute the budgeted “weighted average” annual investment return for dividends and interest for the fourth quarter of 2019. Prepare this spreadsheet so your calculations clearly show the reader your assumptions and how your calculations were made
Transcribed Image Text:Assume that George Mason Medical Center had investments in a Building Replacement
Fund with the following balances as of 9/18/19 listed by category. The Investment
Committee of the Board has approved a recommendation as to how to allocate these
funds. Assume that the portfolio was rebalanced on October 1, 2019 to equal the
Board's target allocation, and that the investment balances in total on October 1st
equaled the $72,250,000 noted on the schedule. Also assume that the following
interest and dividend annual percentage rates that are expected to be earned from
October 1 to December 31 for these investment categories:
Expected
Interest and
Dividend Rate
0.4%
4.3%
Description
Balance as of Future Desired
9/18/19
$ 4,385,000
28,685,000
13,051,000
11,226,000
4,395,000
3,525,000
6,983,000
Allocation
4.0%
40.0%
18.0%
Cash
Fixed Income
Large Cap Value
Large Cap Growth
Mid/Small Cap Value
Mid/Small Cap Growth
International Equity
Emerging Markets Equity
Total
1.8%
20.0%
5.0%
1.2%
0.8%
0.2%
5.0%
6.0%
2.0%
100.0%
2.1%
0.7%
$72,250,000
Average ?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education