Pielago has another excess fund amounting to P5,000,000. She is having difficulty whether to invest it in debt or in equity securities. List down the pros and cons of investing in each security to help her decide wisely.
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- A pensioner is expecting a lump sum of GHC 200,000 when she goes on pension next year and is thinking of the best way to allocate the funds to be received. An investment analyst has introduced her to a four funds as follows: Gamma Fund: This specializes in money market instruments and bonds of large corporations Delta Fund: This specializes in equities of exchange listed financial institutions Beta Fund: This specializes in bonds and equities of all good performing companies Index Fund: This is a portfolio that mimics the Ghana Stock Exchange All Share Index The investment analyst gathered information about the performance of the four funds and this is presented below: Funds Mean Return Standard Deviation Beta Co-efficient Gamma 15% 8% 0.25 Delta 20% 14% 1.20 Beta 18% 14% 0.85 Index 17% 12% 1.00 The rate on Government of Ghana five-year bond which is used as the standard risk-free rate is 8% per annum. The…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is a…
- Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is a…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…
- Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…
- Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks:1. Pan-Elixir Ltd. is a…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates: Stocks: 1. Pan-Elixir Ltd. is…Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing hergraduation successfully. She is a fresh finance graduate and is excited to invest some money inthe capital market, for which she intends to use the gifted sum of $50,000. However, insteadof committing this money to the market immediately, she decides to wait for some time, workin the field and acquire some experience before proceeding with her intended investment. Shethus contemplates an extremely conservative investment in a portfolio of stocks and bonds, atthe start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with thebank which promises an interest rate of 6% per annum.She will require a return of at least 9% on her stock investments and 4% on bond investments.Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free.Stephanie’s research has allowed her to narrow down on the following investment candidates:Stocks:1. Pan-Elixir Ltd. is a…