The expression 1.08 + 1.02b predicts the end- of the year value if a financial portfolio where S is the value of the stocks and
B is the value of bonds in the portfolio at the beginning of the year What is the predicted end-of value of a portfolio that begins the year with $200 in stocks and $100 in bonds?
There is no y as part of the equation. It is a vertical line through 4 on the x axis. Every point on this line has an x coordinate of 4. Recall that all vertical lines have undefined slopes. I picked 4 because it is the x coordinate of the given point (4,7).
