Author Question: The goal of an efficient portfolio is to ________. A) achieve a predetermined rate of return for ... (Read 47 times)

Sufayan.ah · **on:** Jul 10, 2018

The goal of an efficient portfolio is to ________.

A) achieve a predetermined rate of return for a given level of risk
B) maximize risk in order to maximize profit
C) minimize profit in order to minimize risk
D) minimize risk for a given level of return

Question 2

Colin has inherited 6,000 from the death of Grandma Anna. He would like to use this money to buy his mom Hayley a new scooter costing 7,000, two years from now.

Will Colin have enough money to buy the gift if he deposits his money in an account paying 8 percent compounded semiannually?

Swizqar · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

D

Answer to Question 2

n = 2, m = 2, r = 8
FV = 6,000(1+.08/2)2 2 =6000(1.04)4= 7,019
Yes, Colin will have enough money to buy the scooter.