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:

Isenheim Altarpiece

A renowned work of German Renaissance art by Matthias Grünewald, notable for its vivid depiction of the Crucifixion and intricate panel designs.

Core CPI

A measure of the overall cost of consumer goods and services excluding food and energy.

Energy Prices

The cost of different forms of energy, such as electricity, gas, and oil, which can fluctuate based on supply and demand, geopolitical factors, and other influences.

Nominal Interest Rates

The interest rate before adjustments for inflation, representing the face value of borrowing costs.