A. You expect a tax-free municipal bond portfolio to provide a rate of return of 4.2%. Management fees of the fund are 0.62%. What fraction of portfolio income is given up to fees? (Round your answer to 1 decimal place.) b. If the management fees for an equity fund also are 0.62%, but you expect a portfolio return of 14.0%, what fraction of portfolio income is given up to fees? (Round your answer to 1 decimal place.) c. For which fund might management fees be a bigger factor in your investment decision? Bond fund Equity fund

Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next

You decide to invest in a portfolio consisting of 25 percent stock a, 25 percent stock b, and the remainder in stock c. based on the following information, what is the expected return of your portfolio? state of economy probability of state return if state occurs of economy stock a stock b stock c recession .16 - 16.4 % - 2.7 % - 21.6 % normal .55 12.6 % 7.3 % 15.9 % boom .29 26.2 % 14.6 % 30.5 %