# Expected Annual Return Assignment

Let’s suppose that your friend Marty has just inherited \$1,000,000 in cash. He knows that you have completed a class in Portfolio Analysis and wants you to help him invest the money. Marty is 30 years old, married, with two children ages 2 and 4. Marty is a computer engineer and is progressing in his career; his wife is a stay-at-home mom. Marty’s employer provides group life, health, and disability insurance, but does not offer a 401K or other type of retirement plan. Apart from a \$200,000 down payment on a house, Marty will use the remaining \$800,000 of his recent windfall to fund both the educational expenses for his children and his retirement needs. He does not plan to withdraw any of the money until his older child starts college, 14 years from now, and he does not plan to retire until age 60. He says that he is willing to accept a moderate amount of risk. He is focused on capital appreciation, but he hopes that diversification will achieve portfolio stability as well as growth.

 Asset Class Projected Return Expected Standard Deviation Proposed Allocation Stocks Large-cap 9% 15% Mid-cap 10% 17% Small-cap 12% 19% International 13% 21% Emerging markets 18% 30% Bonds 5% 9% Cash equivalents 2% 0%

Given the projected annual returns and proposed allocation, what is the expected annual return on the recommended portfolio? With the information given, is it possible to determine the expected standard deviation of the portfolio? Why or why not? Ignoring taxes and inflation, and assuming the expected annual return remains constant, what is the expected value of the portfolio in 14 years, when Marty’s first child begins college? Get Finance homework help today

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
Thanks so much, excellent work as always.
Customer 453939, May 23rd, 2020
This was by far one of the best that I have received!
Customer 453375, April 22nd, 2022
Political science
Avoid minor revisions; be sure of instructions.
Customer 454483, April 6th, 2022
Communications
Nice. Be keen on instructions.
Customer 462787, April 1st, 2022
Military
Good job
Customer 456821, May 13th, 2022
Military
good job
Customer 456821, January 5th, 2022
Psychology
Good job.
Customer 453707, May 8th, 2022
Although my order was not delivered at my requested time due to issues with email, the material received was great.
Customer 454605, June 19th, 2020
Other
The paper was beautifully written and all instructions were followed exactly as stated. Thank you so much for delivering a quality paper.
Customer 452455, February 22nd, 2023
LIFE SPAN DEVELOPMENT
Satisfactory.
Customer 462623, April 15th, 2022
Human Resources Management (HRM)
Excellent combination.
Customer 462485, April 3rd, 2022
SEO
you captured my imagination. good copy writing skills
Customer 452441, June 17th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend