Your Retirement Portfolio Comprises 300 Shares of the S&P 500

question 97

Multiple Choice

Your retirement portfolio comprises 300 shares of the S&P 500 fund (SPY) and 100 shares of iShares Barclays Aggregate Bond Fund (AGG) . The price of SPY is $136 and that of AGG is $97. If you expect the return on SPY to be 11% in the next year and the return on AGG to be 10%, what is the expected return for your retirement portfolio?

• A) 9.73%
• B) 8.65%
• C) 10.81%
• D) 10.27%

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Definitions:

Gratification

The pleasure or satisfaction obtained from achieving or receiving something desired.

Hedonia

The pursuit of pleasure and the avoidance of pain; often associated with the concept of happiness and well-being.

Intrinsic Motivation

A drive to engage in activities for their own sake, due to interest, satisfaction, or personal challenge.

Autonomy

The capacity of an individual to make an informed, un-coerced decision; often associated with independence and self-governance.