Home Mail MemberMap Chat (0) Wallpapers
Go Back   ChiefsPlanet > The Lounge

Reply
 
Thread Tools Display Modes
Old 02-20-2013, 10:30 AM  
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 
Join Date: Nov 2011
Casino cash: $50809
Smart People: Help me do math homework

How would a person begin to answer this problem?

Quote:
What mix or set of mixes of these individual assets will provide a 6.5% return?

Name
Expected Return
Holding 1
8.50%
Holding 2
9.20%
Holding 3
3.10%
Holding 4
4.80%
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 02-20-2013, 09:59 PM   #46
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $50809
Quote:
Originally Posted by cdcox View Post
Knowing La Lit, I'm pretty sure its not. He's a word geek, not a numbers geek.
Thank you for that. In nearly every situation, you would be correct. However, I'm taking Wealth Management this semester in a foray back to undergrad classes. Being my last semester at law school, I can afford to take a relaxed schedule. I wanted to take this course (along with espanol) because I know that clients will ask me about the issues in estate planning, and I wanted to have some idea of good financial investment options. I'm really enjoying it so far, but the minor amount of math involved is an obstacle, unfortunately. I can figure out basic things like what savings total at retirement is necessary for a person who wants xK per year to live on, but aside from that, I'm a fish out of water.
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 02-20-2013, 10:04 PM   #47
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $50809
Quote:
Originally Posted by KC native View Post
Ugh efficient frontier is such a flawed concept. They finally dropped it from the CFA curriculum.

Not saying your wrong, just nitpicking about my least favorite part of portfolio management theory in modern finance.
It seems like each investment firm develops their own efficient frontier portfolio.
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 02-20-2013, 10:22 PM   #48
Coogs Coogs is offline
MVP
 

Join Date: Aug 2000
Location: Northern Kansas
Casino cash: $84208
Quote:
Originally Posted by La literatura View Post
Thank you for that. In nearly every situation, you would be correct. However, I'm taking Wealth Management this semester in a foray back to undergrad classes. Being my last semester at law school, I can afford to take a relaxed schedule. I wanted to take this course (along with espanol) because I know that clients will ask me about the issues in estate planning, and I wanted to have some idea of good financial investment options. I'm really enjoying it so far, but the minor amount of math involved is an obstacle, unfortunately. I can figure out basic things like what savings total at retirement is necessary for a person who wants xK per year to live on, but aside from that, I'm a fish out of water.
I hate to be an asshat, but given the limited amount of information you gave in the OP, it seems as if a few more thank you's besides the one you just gave would be in order.
Posts: 17,575
Coogs has disabled reputation
  Reply With Quote
Old 02-20-2013, 10:34 PM   #49
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $50809
Yes, thank you. Rep on the way. That was all the info I was given.

Turns out most students have some Solver program on Excel, which I've since added but have no idea how to use. So I'll probably be sticking with these formulas you and others have provided.
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 02-20-2013, 10:38 PM   #50
Coogs Coogs is offline
MVP
 

Join Date: Aug 2000
Location: Northern Kansas
Casino cash: $84208
Quote:
Originally Posted by La literatura View Post
Yes, thank you. Rep on the way. That was all the info I was given.

Turns out most students have some Solver program on Excel, which I've since added but have no idea how to use. So I'll probably be sticking with these formulas you and others have provided.
You're welcome! I realize the answer I gave you was pretty much basic algebra in step-by-step, but it will work for any amount of money you wish to invest.

Hope you get an A.
Posts: 17,575
Coogs has disabled reputation
  Reply With Quote
Old 02-20-2013, 10:45 PM   #51
cdcox cdcox is offline
www.nfl-forecast.com
 
cdcox's Avatar
 

Join Date: Sep 2000
Casino cash: $11389349
It's cool that you are stretching yourself trying to develop a working knowledge of something out of your comfort zone. I've always wanted to learn to play guitar or piano (music doesn't come easy for me), but my hands seem to be the fastest aging part of my body, so that isn't happening.
Posts: 31,251
cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.cdcox has parlayed a career as a truck driver into debt free trailer and jon boat ownership.
  Reply With Quote
Old 02-22-2013, 09:18 AM   #52
Saul Good Saul Good is offline
Supporter
 

Join Date: Jul 2005
Casino cash: $186432
Quote:
Originally Posted by Coogs View Post
That's all good if he is allowed to only use 2 of the 4 options. But if he is required to use all 4 of the percentages listed, he better go with something like along the lines I provided for him.

EDIT: We are essentially doing the same thing... I just eliminated 2 of the options by giving each a 25% value. Didn't mean to come across as my way was better Saul Good! Hope you didn't take it that way.
If you have to use all four, simply divide the percentages in half, do the same thing for options 1 and 2, and add them together.

Standard algebra is really all that is needed here, and it's about a 30 second solution. I don't feel like math instructors do a good enough job of translating their teachings into practical applications. There really isn't any point in learning algebra if you don't know how to apply it. If you do, it's actually extremely useful and comes in handy a lot more often than most people probably realize.

Then, when you use it, people look at you like you just explained string theory even though you're just really busting out something you learned in 7th grade.
__________________
Quote:
Originally Posted by J Diddy View Post
Saul 2014
Posts: 30,520
Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.Saul Good is obviously part of the inner Circle.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -6. The time now is 05:41 AM.


Powered by vBulletin® Version 3.8.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.