You have $5000 to invest for 1 year. Fund A has an estimated 4% annual return, and Fund B has an estimated 10% annual return. Fund A is more stable, and preferred among investors with low risk tolerance. Fund B is less stable, but has larger returns. Answer the following questions about this investment opportunity. Suppose you have a high risk-tolerance, and you invest everything in Fund B. How much do you expect to make on your investment? $ . Round to the nearest cent
Investment Analysis
You have $5000 to invest for 1 year. Fund A has an estimated 4% annual return, and Fund B has an estimated 10% annual return.
Fund A is more stable, and preferred among investors with low risk tolerance. Fund B is less stable, but has larger returns.
Answer the following questions about this investment opportunity.
Suppose you have a high risk-tolerance, and you invest everything in Fund B. How much do you expect to make on your investment?
$ . Round to the nearest cent.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
You have $5000 to invest for 1 year. Fund A has an estimated 4% annual return, and Fund B has an estimated 10% annual return.
Fund A is more stable, and preferred among investors with low risk tolerance. Fund B is less stable, but has larger returns.
Answer the following questions about this investment opportunity.
1. Suppose you have a low risk-tolerance, and you invest everything in Fund A. How much do you expect to make on your investment?
Round to the nearest cent.
2. Suppose you have a medium risk-tolerance, and you want an annual return of $355. You decide to invest part in Fund A and the rest in Fund B. How much do you need to invest in Fund A?
by Bartleby Expert