Upon retirement a couple is considering the option of purchasing a perpetuity of $60000 from their retirement
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Question:
Upon retirement a couple is considering the option of purchasing a perpetuity of $60000 from their retirement savings.
You as a financial adviser, how much they should set aside from their retirement funds if you believe that the market risk is the same as the market portfolio.
The T. Bill rate is 4% and the expected market risk premium is 7%
Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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