A person has $30,000 to invest. As the person's financial consultant, you recommend that the money...
If possible please solve in Excel. An individual has $200,000 to invest. They are trying to maximize their return, but have given their investor advisor instruction on how to invest the money. The investment advisor has given them four different alternatives to invest in, they are listed in the table below along with their rates of return that is estimated. Investment-Type Hydro one - Stock Bank of Canada- Treasury Bills Bell Canada-Bonds Alberta Oil Sands Co. - Stock Rate of...
An investment broker has received $250,000 to invest in a 12-month commitment. The money can be placed in Treasury notes (with a return of 8% and a risk score of 2) or in municipal bonds (with a return of 9% and a risk score of 3). The broker’s client wants diversification to the extent that between 50% and 70% of the total investment must be placed in Treasury notes. Also, because of fear of default, the client requests that the...
Financial investment ~ Kevin is looking to invest his money in a local investment company called Robin Hood financial services. To ensure his investment is safe and has good returns, he wants to randomly survey people who invested with the company and ask whether they would recommend the company for investment. Kevin wants to estimate the actual proportion of people who recommend Robin Hood financial services for investment. To calculate the required sample size, what value of p*{"version":"1.1","math":"<math xmlns="http://www.w3.org/1998/Math/MathML"><mi>p</mi><mo>*</mo></math>"} should...
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A bonds 6%and on bonds 9%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond if the total investment is $26.000, and the investor wants an annual return of $1620 on the three investments The client should investsin AAA bonds,...
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A bonds 6%, and on B bonds 9%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions? A. The total investment is $26,000 and the investor wants an annual return of $1,620 on the three investments....
•A intends to invest a level amount of money equal to $1,000 into a fund at the end of every year for 20 years. This fund is projected to earn an annual effective interest rate of 10%. At the end every year, A will have to withdraw the interest accrued during that year and reinvest it at an annual effective rate of 6%. •Assume that A wants the annual yield rate of the above investment scheme to be 8% over...
Palo Alto Enterprises has $200,000 in cash. They wish to invest the money in Treasury bills at 5% and use the returns to pay dividends to shareholders after a year. Alternatively they can pay a dividend and allow shareholders to make the investment. If corporate tax rates are 30%, which option will shareholders prefer in perfect capital markets? Select one: A. immediate cash dividend B. dividend after one year C. prefer half from each source D. indifferent between options
Katy Chan has inherited $100 000 from her aunt. She wants to invest the money for one year after which she will go on a trip to Egypt with the return on investment (i.e., she wants to save the $100 000 and spend the return). She wants to maximize the return on her one-year investment. Katy is considering the following options: Buy bonds at a guaranteed interest rate of 12%. Invest in a new computer company. If the company is...
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%,on A bonds 6%, and on B bonds 9%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions? A. The total investment is $23 000, and the investor wants an annual return of $1430 on the three investments....
Cameron has accumulated $100,000 in savings and wishes to invest this money sensibly. The types of investments and their corresponding percentages, recommended by a financial advisor, are shown in the following circle graph. Recommended Categories of Investment stocks 43%, annuities 22%, real estate 10%, bonds 10%, mutual funds 15% -Find the amount of money that Cameron should invest in stocks. Round your answer to the nearest hundredth, if necessary. -Find the amount of money that Cameron should invest in annuities....