Even after your decision with Sarah Brown, the Bledsoe Financial Services Representative, you are still unsure as to which investment option you should choose. You have decided that you should invest in a diversified portfolio, with 70 percent of your investment in equity, 25 percent in bonds, and 5 percent in the money market.
I need assistance with three questions on the attached document.
Please see attached file for full problem description. Even after your decision with Sarah Brown, the Bledsoe Financial Services Representative, you are still unsure as to which investment option you should choose.
You have decided that you should invest in a diversified portfolio, with 70 percent of your investment in equity25 percent in bonds, and 5 percent in the money market.
In thinking it over, you understand the basic difference in the two funds. The other is actively managed with the intention that the skill of the portfolio manager will result in improved performance relative to an index. Fees are higher in the latter fund.
After discussing your concerns, Dan gives you some information comparing the performance of equity mutual funds and the Vanguard index fund.
Fees are very low. So for example, from January to Decemberabout 70 percent of equity mutual funds outperformed the Vanguard Dan suggests that you study the graph and answer the following questions: What implications do you draw from the graph for mutual fund investors?
Is the graph consistent or inconsistent with market efficiency? What investment decision would you make for the equity portion of your k account? Please find my response below.
I have done my best to answer your questions to the best of my ability. I hope you find the response excellent. Thanks and good luck. In reality, there has been an accelerating trend in recent decades to create passively managed mutual funds that are based on market indices, known as index funds.
Advocates claim that index funds routinely beat a large majority of actively managed mutual funds this is proved by the graph provided ; one study claimed that over time, the average actively managed fund has returned 1.
Solution Summary The solution answers the question below in in detail in words.Jun 09, · (k) plans are mainly employer-sponsored: employees elect to have a portion of their wages paid directly into their individual (k) account, which is managed by the employer.
Such payments are known as "contributions".Status: Resolved.
Your (k) Account at East Coast Yachts You have been at your job for East Coat Yachts for a week now and have decided you need to sign up for the company’s (k) plan. Even after your decision with Sarah Brown, the Bledsoe Financial Services. asked by Kelly on October 24, ;. Learn the skills to be a Regional Vice President Learn a new skill online, on your own time.
View Essay - BUS WEEK 5 from BUS at Ashford University. Your (K) Account at East Coast Yachts Your (k) Account At East Coast Yachts 1. The implications that can be drawn from the given%(2).