PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Textbook Question
Chapter 4, Problem 8FPE
Determining the right amount of short-term, liquid investments. Ella and Aaron Martin together earn approximately $92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $200,000.
- a. How much of their annual income do you recommend the Martins hold in some form of liquid savings as reserves? Explain.
- b. How much of their investment portfolio do you recommend they hold in savings and other short-term investment vehicles? Explain.
- c. How much, in total, should they hold in short-term liquid assets?
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Ella and Aaron Martin together earn approximately $92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $200,000.
a. How much of their annual income do you recommend the Martins hold in some form of liquid savings as reserves? Explain.
b. How much of their investment portfolio do you recommend they hold in savins and other short-term investment vehicles? Explain.
c. How much, in total, should they hold in short-term liquid assets?
Ella and Aaron Martin together earn approximately $92,000 a year after taxes. Through an inheritance and some wise investing, they also have an investment portfolio with a value of almost $200,000.
a. how much of annual income do you reccoment they hold in liquid savings as reserves? why?
b. How much of their investment portfolio do you reccoment they hold in savings and other short term vehicles? Explain.
c. How much, in total, should they hold in short term liquid assets?
Determine the right amount of short term, liquid assets.
(Explain.)
(Explain.)
How much in total in liquid assets:
Essay Questions
You have just received an inheritance from your aunt of $25,000 in a brokerage account. According to your aunt's will, the monies cannot be withdrawn or put into a savings account (including a CD). The funds must be invested in three different types of financial investments.
Select one of the four portfolios below and identify the percentage you would invest in each. Describe the strategy you used to allocate the percentages for each.
Research specific investments based on the portfolio you selected. Identify each investment you selected and explain why you made those selections. (Note – there should be at least three symbols in your essay that identify your investments).
Option 1
Option 2
Option 3
Option 4
Stock
Mutual Fund
Bond
REIT
Bond
EFT
Mutual Fund
ETF
Mutual Fund
Stock
ETF
Mutual Fund
Chapter 4 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
Ch. 4 - Prob. 1LOCh. 4 - Describe todays financial services marketplace,...Ch. 4 - Prob. 3LOCh. 4 - Prob. 4LOCh. 4 - Prob. 5LOCh. 4 - Develop a cash management strategy that...Ch. 4 - Adapting to a low-interest-rate environment. A...Ch. 4 - Prob. 2FPECh. 4 - Choosing a new bank. Youre getting married and...Ch. 4 - Prob. 4FPE
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