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2 years ago

What should investors consider when planning for their retirement?

1 answer:

5 0

Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing risk tolerance, and doing estate planning. Start planning for retirement as soon as you can to take advantage of the power of compounding.

Planning for retirement is making preparations for your future so that you can continue to achieve all of your objectives and desires on your own. Setting your retirement goals, calculating how much money you will require, and making investments to increase your retirement savings are all included in this. Every retirement strategy is different.

Planning for retirement is crucial because it might prevent you from running out of money in later life. Your strategy can assist you in determining the rate of return you require on your assets, the appropriate level of risk, and the maximum amount of income you can safely draw from your portfolio.

Learn more about Planning for retirement here

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Explain how the production possibilities curve can be used to illustrate each of the following: a. wastefulness b. what happens

Lemur [1.5K]

Answer:

A. wastefulness - production inside PPC ; B. Economy growth - PPC shift outwards/rightwards ; C. Economy at Productive Efficiency - production on PPC ; D. Unattainable Production- Outside PPC

Explanation:

PPC is graphical representation of production combinations that an economy can produce, given resources & technology.

PPC is based on assumption : That resources are best efficiently utilised. So, all product combinations ON PPC reflect 'Economy is at Productive Efficiency'

All production points INSIDE PPC reflect inefficient utilisation of resources i.e 'Wastage'

Points OUTSIDE PPC are 'Unattainable Product Combinations'- as they are beyond economy's best optimum production, given resources & technology.

'Economic growth' is increase in resources &/or technology which increases economy's production potential and PPC curve SHIFTS rightwards or outwards.

5 0

3 years ago

You own a portfolio that is 31 percent invested in Stock X, 46 percent in Stock Y, and 23 percent in Stock Z. The expected retur

MrRa [10]

Answer: 13.53%

Explanation:

The expected return on the portfolio will be calculated by multiplying the investment in each stock by the expected return of the stocks. This will be:

= (31% × 11%) + (46% × 14%) + (23% ×16%)

= 3.41% + 6.44% + 3.68%

= 13.53%

6 0

3 years ago

If the current interest rate is 5% and your semi-annual coupon paying bond has a duration of 5.33 years, how much will the price

Serhud [2]

Answer:

Percentage change in price = -5.33 * 0.00005

Explanation:

Percentage change in price = - modified duration * (Change in yield in BP/100)

Percentage change in price = -5.33 * ((0.01/2)/100)

Percentage change in price = -5.33 * (0.005/100)

Percentage change in price = -5.33 * 0.00005

7 0

3 years ago

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add anothe

choli [55]

Answer:

The value of the investment would be $16,035.87 in 12 quarters from now

Explanation:

The value of $2,500 after four quarters can be determined with the below formula:

FV=PV*(1+r/t)^N*t

FV is the future value of the investment, the unknown

PV, the present value of the investment is the amount invested.

r is the rate of return of 4%

t is the number of times interest is paid annually,4 times in this case

After the first four quarters, the worth of the investment is shown thus:

FV=$2500*(1+4%/4)^1*4

FV=$2500*(1+1%)^4

FV=$2,601.51

After that $5000 was added to $2,601.51 making $7,601.51 which was reinvested to yield the below:

FV=$7,601.51*(1+ in 4%/4)^1*4

FV=$7,601.51*(1+1%)^4

FV=$7910.16

Then $7,500 was added to $7,910.16 which turns $15,410.16

FV=$15,410.16*(1+4%/4)^1*4

FV=$15,410.16*(1+1%)^4

FV=$16,035.87

4 0

3 years ago

One of the reasons why the discounted cash flow method of valuation is useful in assessing the value of fixed income instruments

Lerok [7]

Answer:

i just know im right

7 0

3 years ago