You own two investments a and b that have a combined total


You own two investments, A and B, that have a combined total value of 64, 462 dollars. Investment A is expected to make its next payment in 1 month.

A's next payment is expected to be 358 dollars and subsequent payments are expected to grow by 0.43 percent per month forever. The expected return for investment A is 1.04 percent per month.

Investment B is expected to pay 209 dollars each quarter forever and the next payment is expected in 3 months. What is the quarterly expected return for investment B?

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Financial Management: You own two investments a and b that have a combined total
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