投资学第7版Test Bank答案
41. How much can Stephanie expect to have in her risky account at retirement?
A) $2,731,838
B) $2,915,415
C) $1,425,316
D) $224,651
E) $3,545,886
Answer: A Difficulty: Moderate
Rationale: The value in the risky account in 44 years will be $3,800*(1.10)44 +
$3,800*FVIFA10%,44 = $2,731,838.38.
Use the following to answer questions 42-45:
Genny Webb is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she contributes $2,000 to the plan and her employer contributes an equal amount. Genny thinks she will retire at age 63 and figures she will live to age 90. The plan allows for two types of investments. One offers a 3% risk-free real rate of return. The other offers an expected return of 12% and has a standard deviation of 39%. Genny now has 20% of her money in the risk-free investment and 80% in the risky investment. She plans to continue saving at the same rate and keep the same proportions invested in each of the investments. Her salary will grow at the same rate as inflation.
42. How much does Genny currently have in the safe account; how much in the risky
account?
A) $1,500, $6,000
B) $3,000, $4,500
C) $2,000, $5,500
D) $4,800, $2,700
E) $3,500, $3,500
Answer: A Difficulty: Easy
Rationale: The safe account has .20*$7,500=$1,500 and the risky account
has .8*$7,500=$6,000.