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marissa [1.9K]
4 years ago
15

Which of the following would be considered the highest risk portfolio? AA portfolio made up of 20% savings accounts, 50% mutual

funds, and 30% bonds. BA portfolio made up of 40% mutual funds, 40% Treasury bonds, and 10% stocks. CA portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds. DA portfolio made up of 70% mutual funds, 10% stocks, and 20% Treasury bonds.
Business
2 answers:
LenKa [72]4 years ago
8 0

Answer:

The correct answer is letter "C": A portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds.

Explanation:

Stocks are assets that can provide good returns if applied a strategy. However, this is one of the most volatile assets there are compared to others such as mutual funds or treasury bonds since the value of a stock is affected by the daily activity of the company.

In that sense, if a portfolio is based 60% only in stocks it will be a very risky one because in a matter of days that 60% can be completely lost.

Vlad [161]4 years ago
7 0

Answer

C. A portfolio made up of 60% stocks, 30% mutual funds and 10% Treasury bonds.

Explanation

In this option, the investment is more than 50% for  the money placed in stocks and the prices for stock keep on fluctuating on daily basis. This is a highly risky investment though investments in stock can give a good return. To safeguard the amounts that were saved, a person has to avoid putting more investments on stock.


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Not all types of work are covered by a minimum wage.<br><br> True<br> False
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A company has increasing marginal returns. Total production is 5 units when the first worker is hired. Total production rises to
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Answer:

Total production should be greater or equals to 20 units.

Explanation:

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You need a loan of ​$140,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Bri
nadezda [96]

Answer:

  • Monthly Payment for Choice 1=$665.16
  • Monthly Payment for Choice 2=$627.10
  • Total Closing Cost for Choice 1=$241557.60
  • Total Closing Cost for Choice 2=$233456
  • (A)Choice 1 be the better choice the monthly payment is higher.
  • (D)Choice 2 be the better choice because the monthly payment is lower.

Explanation:

Amount of Loan needed = $140,000

  • A point is an optional fee which helps you get a lower interest rate on your loan.
  • Closing costs are the fees you pay when obtaining your loan.

<u>Choice 1</u>

30-year fixed rate at 4% with closing costs of $2100 and no points.

Monthly Payment

P=$140,000

Monthly Rate=4% ÷ 12=0.04 ÷ 12=0.0033

n=12 X 30 =360

=\dfrac{Pr(1+r)^n}{(1+r)^n-1}

=\dfrac{140000X0.0033(1+0.0033)^{360}}{(1+0.0033)^{360}-1}\\=\dfrac{462(1.0033)^{360}}{(1.0033)^{360}-1}\\=\$665.16

Monthly Payment=$665.16

Total Closing Cost =(665.16 X 360)+2100=$241557.60

<u>Choice 2</u>

30-year fixed rate at 3.5% with closing costs of $2100 and 4 points.

Monthly Payment

P=$140,000

Monthly Rate=3.5% ÷ 12=0.035 ÷ 12=0.0029

n=12 X 30 =360

=\dfrac{Pr(1+r)^n}{(1+r)^n-1}

=\dfrac{140000X0.0029(1+0.0029)^{360}}{(1+0.0029)^{360}-1}\\=\dfrac{406(1.0029)^{360}}{(1.0029)^{360}-1}\\=\$627.10

Monthly Payment=$627.10

Total Closing Cost =(627.10 X 360)+2100+(4% of 140000)=$233456

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