Question: please help. thank you :) 1. (10 points) Suppose the value of the investments in your 401k portfolio increases in value from $12,750 to $14,500



1. (10 points) Suppose the value of the investments in your 401k portfolio increases in value from $12,750 to $14,500 this year. At the same time, the CPI increased from 285 to 310 . a. What is the nominal return on your portfolio? b. What is the inflation rate? c. What is the real return on your portfolio? (10 points) You've recently learned of a mutual fund offering a mean return of 12% and a standard deviation of 4%. In any given year, there is about a 95% chance that this fund's annual return falls within what range? 3. (10 points) PlexiCo has issued new bonds to fund the construction of a synthetic glass factory. The bonds currently trade for $800 with a face value at maturity of $1,000. If the bonds' coupon rate is 5% and the bonds mature in 10 years, how much money should investors expect when the bond issues a coupon payment every 6 months? Given the bond's price and coupon rate, what must be true of the current interest rate? 4. (10 points) Niles has $2,000 he considers his emergency fund. Suppose, Niles contributed the money to a Roth IRA at his brokerage firm. The invested funds in the IRA earned 5% (APY) this year and the brokerage firm charged total fees of $75. His marginal tax rate is 22%. a. Calculate the balance of the fund after one year, not accounting for fees. b. Suppose he has an unexpected car repair of $1,000 and must make a withdrawal. What are the penalties and taxes associated with this withdrawal? c. What does Niles have loft after making the withdrawal and paying all relevant penalties, fees, and taxes
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