What is your expected portfolio return of an investment portfolio with a 60/40 allocation of stocks and bonds, respectively, if you expect long term equities to return 8%, and long term bonds to return 2%?     5.6%     6.2%     4.8%     5.1% 2.  You are looking into developing your first investment portfolio.  After assessing your risk tolerance, you believe that an 90/10 allocation of stocks and bonds, respectively, is where you want to begin.  You believe that 7% is what stocks will return over the next ten years, and 4% is what you expect to return in your bond portfolio.  If you invest $300/month for the next ten years, what will your portfolio be worth?      $51,077     $47,579     $52,843     $44,880

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 25P
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1. 

  1. What is your expected portfolio return of an investment portfolio with a 60/40 allocation of stocks and bonds, respectively, if you expect long term equities to return 8%, and long term bonds to return 2%?

       

    5.6%

       

    6.2%

       

    4.8%

       

    5.1%

    2. 

    1. You are looking into developing your first investment portfolio.  After assessing your risk tolerance, you believe that an 90/10 allocation of stocks and bonds, respectively, is where you want to begin.  You believe that 7% is what stocks will return over the next ten years, and 4% is what you expect to return in your bond portfolio.  If you invest $300/month for the next ten years, what will your portfolio be worth? 

         

      $51,077

         

      $47,579

         

      $52,843

         

      $44,880

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