You wish to save for your son’s education the present cost of which is Rs. 320000 and is expected to increase by 6% every year. If your son is 12 years old and will require money in 8 years time, what is the annual amount of investment to be made if it is likely to earn 12% rate of return?
Mr. Raja Ram is working as a regional head in a Pharmaceutical Company. He has a annual income of Rs. 10,00,000. He will be retiring in next ten years. His current expenses are Rs. 5,00,000. The inflation rate for the foreseeable future is expected to be 5%. He assumes that his post retirement expenses will be 70% of his last year expenses of his service and they will increase at inflation rate and paid at the beginning of each year. On his retirement He plans to leave his current rented apartment and shift into a spacious and airy bungalow located on the suburbs of the city (his long cherished dream). The current price of the bungalow is Rs. 24 lakh which is estimated to increase in line with inflation rate. A ten year government security paper fetches 10% interest rate, which will remain constant for the forthcoming period. He is in good health and expects to live for twenty years after retirement.
As a CWM® you are required to calculate the amount he needs to save at the end of ten years on an annual basis so that he can pay his post retirement expenses as well as buy his dream house.
The information about 3 stocks is provided below:
Assuming that the required rate of return on investment is 14%, what maximum price an investor should be willing to pay and Which Stock should he buy?
Consider the following information for three mutual funds:
Market Return 10%
Risk free return is 6%.
Calculate the Risk Adjusted Return on the basis of Jensen measure (%)?
TESTED 08 May 2024
