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27 May, 13:58

The expressions 1.08s+1.02b predicts the end of the year value of a financial portfolio where S is the value of stocks and B is the value of bonds in a portfolio at the beginning of the year. What is the predicted end-of-the-year value of a portfolio that beginsthe year with $200 in stock and $100 in bonds

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  1. 27 May, 14:16
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    We have

    Stock = $200

    Bonds = $100

    Substitute these values into 1.08s+1.02b, where 's' is stock and 'b' is bond

    1.08 (200) + 1.02 (100) = 318

    Predicted end of year value is $318
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