You have $100,000 to invest. Investment Horizon is 15 years, at which point you will use the
Question:
You have $100,000 to invest. Investment Horizon is 15 years, at which point you will use the money as a downpayment on a house. You don't plan to use the money until then, but should you need it, it can be used as an emergency fund. You are required to invest in Vanguard mutual funds, and only that.
https://investor.vanguard.com/mutual-funds/list#/select-funds/asset-class/month-end-returns - List of funds
Pick any from one to six funds, and decide how much of the $100,000 you want to invest in each.
Provide the estimate of the current yield (dividends + interest) divided by the value of the portfolio. Also provide the total expected return of the portfolio.
Would your choice of funds be different if you only had a one year investment horizon?
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta