Question

What is the predicted end-of-year value of a portfolio that begins the year with $200, in stocks and $100 in bonds?

Answer 1

$318

Explanation:

Calculation to determine the predicted end-of-year value of a portfolio

Given expression 1.08s + 1.02b

Now let determine the Predicted end-of-year value

Predicted end-of-year value=1.08(200) +1.02(100)

Predicted end-of-year value=216+102

Predicted end-of-year value=$318

Therefore the predicted end-of-year value of a portfolio will be $318