Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mr. blair, a retired government officer, has recei

Mr. Blair, a retired Government Officer, has received his retirement benefits. He is contemplating as...

80.2K

Verified Solution

Question

Accounting

Mr. Blair, a retired Government Officer, has received his retirement benefits. He is contemplating as to how much funds he should invest in various alternatives open to him so as to maximize return on investment. The investment alternatives are government security, fixed deposits of a public limited company, equity shares, time deposits in banks, RRSP and real estate. He has made a subjective estimate of the risk involved on a five-point scale. The data on the return on investment, the number of years for which the funds will be blocked to earn this return on investment and the subjective risk involved are as follows:

Items

Return on Investment (Percent)

Number of years

Risk

Government Securities

6

15

1

Company Deposits

15

3

3

Equity shares

20

6

7

Time Deposits in banks

10

3

1

RRSP

12

6

1

Real Estate

25

10

2

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

How are Early Tang and Late Tang eras different? Can we call the Tang era \"cosmopolitan?\"...

Accounting
1.2K views

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s...

Physics
1.2K views

A student is working on a circuit in which a resistance of 1002 is connected...

Physics
1.2K views

Q12 Determine the total compression of a bar made up of three circular cross sections...

Basic Math
1.2K views

Solve the system algebraically.5x + 3y = -3x = 3y - 15

Calculus
1.2K views

Which of the following shows the simplified function of sin x/1- cos x

Accounting
1.2K views

In 2018, the Westgate Construction Company entered into a contract to construct a road for...

Accounting
1.2K views

If the Buderim branch made 6.4 cents in interest for every $1 a customer was...

Accounting
1.2K views

Blue Company is unable to reconcile the bank balance at January 31. Blues reconciliation is...

Accounting
1.2K views

Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is...

Accounting
1.2K views

please answer all four requirements. Dillon Products...

Accounting
1.2K views

Cash Cow Company has the following data available. What is its accurate cash balance? ...