INVESTMENT PORTFOLIOS

So Yesterday in class we learnt about investment portfolios. This is basically the notes I took in class.

Safe<-------------------->Risky

low rate High rate

1-4% 5-30%

Cash-safe-low return

fixed income- somewhat safe- low return- not as liquid

Equity-growth-risky-higher returns

eg.stocks,mutual funds

Steps to find efective Rate (tvm solver)
1) enter N=1 I%=rate PV=-1 PMT=0 P/Y=1 C/Y=comp. period
2)Solve for FV
3) Change comp/year=1
4) Solve for new I%

Steps for Average Rate of Return
1)Calc. individual returns
2)Determine total return
3)N=1 PV=total invested PMT=0 FV= Total invested+interest P/Y=1 C/Y=1
4)Solve for I%

I also Posted a Picture of The Eastern Confrence Standings as of today for all the leafs fans in the class.