Q5. You are considering two investment choices: a. 1 year CD that pays 2% for sure; b. investing in SP500 with 8% expected and 20% stdev. Q5c. You want to reach 15% mean return per year as a minimum. What is the least amount you need to allocate to stocks? What is the stdev of the portfolio?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Q5. You are considering two investment choices: a. 1 year CD that pays 2% for sure; b. investing in SP500 with 8% expected and 20% stdev.

Q5c. You want to reach 15% mean return per year as a minimum. What is the least amount you need to allocate to stocks? What is the stdev of the portfolio?

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