Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Mr. X would like to invest rupees 1,00,000 in mutual funds for a period of one year. He has got the suggestion from his friend to invest in different types of mutual funds namely money market mutual funds (average return is 12%), ETFs (average return is 12.5%), and common mutual funds with varied features like balanced, and dynamic mutual funds (average return is 15%). He is expecting an average rate of return on his investment at 15%. you are requested to advise him that (i) in what way he can invest that money and why he has to choose such portfolio? (ii) in order to get the expected rate of return what techniques he has to follow?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91785597
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

Thsi estimates that a project will initially cost 523

THSI estimates that a project will initially cost $5.23 million to setup and will generate $20 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total ...

One of your customers has just made a purchase in the

One of your customers has just made a purchase in the amount of $19,200. You have agreed to payments of $335 per month and will charge a monthly interest rate of 1.11 percent. How many months will it take for the account ...

1 assume that company a wants to take-over company b

1) Assume that Company A wants to take-over Company B. Determine the enterprise Value of company B? Can Company A afford to buy Company B? Additional information Company A stock price 6.80 AED per share in 2017 and 6.90 ...

Bacchus vineyards inc is expected to pay its first annual

Bacchus Vineyards, Inc. is expected to pay its first annual dividend five years from now. That payment will be $4.39 a share. Starting in year six, the company will increase the dividend by 3.7 percent per year. The requ ...

An organization considers two mutually exclusive real

An organization considers two mutually exclusive real estate projects with identical initial investments of US $100,000.00 but different expected cash flows. The organization requires a 10 percent return on these types o ...

Consider the following scenario analysisrate of

Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.20 -4% 16% Normal economy 0.50 18  9  Boom 0.30 29  6  a.  Is it reasonable to assume that Treasury bonds will provid ...

It is now may 1 2015 and timmy has just purchased a

It is now May 1, 2015, and Timmy has just purchased a five-year U.S. government bond (FV = $1,000) with a quoted price of 93.779. This bond has a 6-percent coupon rate, and the last semi-annual coupon payment was made on ...

Your grandfather has agreed to deposit a certain amount of

Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.75 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to ...

A bank makes a loan on 01012010 with the following

A bank makes a loan on 01/01/2010 with the following payments: 06/30/2010 - $2,300,000 12/31/2010 - $1,300,000 06/30/2011 - $5,700,000 12/31/2011 - $3,400,000 06/30/2012 - $360,000 12/31/2012 - $560,000 At an annual rate ...

You are considering investing in one of these three

You are considering investing in one of these three stocks: Stock Standard Deviation Beta A. 8% 0.59 B 10% 0.61 C 12% 1.29 If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As