Use of Financial Calculator TI BA II Plus Required

question 95

Multiple Choice

Use of Financial Calculator TI BA II Plus required. You have just purchased a diversified portfolio of mutual funds by allocating $10 000 in each of a U.S. equity fund and a Canadian equity fund and by allocating $20 000 in a long-term bond fund. Long-term average annual returns on U.S. equities is 4.75 percent, on Canadian equities is 10.5 percent, and on bonds is 4.6 percent. What will your portfolio be worth in 20 years if these average rates hold true and you do not re-balance the mix?

• A)$151 920
• B)$148 125
• C)$169 432
• D)$143 886

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Definitions:

Rejection Region

In hypothesis testing, the range of values for which the null hypothesis is rejected in favor of the alternative hypothesis.

Population Variances

A measure of the dispersion of all the data points in a population from the mean.

Confidence Interval

A span of numbers, extracted from statistics of a sample, which is probably going to include the value of an unseen population parameter, with a specified level of certainty.

Population Variances

Statistical measures that quantify the spread or dispersion within a set of population data values.