Workplace reviews and discussion: 凱基證券股份有限公司

Although learning can be stressful and uncomfortable, like having an itchy and painful foot, the knowledge in every unit is worth the effort. Mom and Dad are too tired, working overtime every day, so they cannot always be with you. But the notes you take and the effort you put in will earn applause and encouragement in the future.

One day, a son asked his father about an investment plan using a total of $900,000, invested in installments across two stocks:

New Stock A (growth-oriented): The expected annual return is 12%, but it is highly volatile; the projected return can be achieved only if the investment is held in full for six months after each installment.

Old Stock B (value-oriented): The expected annual return is 6% and it is relatively stable; after each installment, it only needs to be held for three months to achieve its expected return.

The investor plans to invest in installments as follows:

Invest $90,000 every month for 10 consecutive months.

Assume that after each installment, the funds realize the stock’s specified return in a lump sum at the end of the relevant holding period, and cannot be used before the return is realized.

If the investor invests in New Stock A in odd-numbered months and Old Stock B in even-numbered months, and settles all returns at the beginning of the 12th month, which option is closest to the estimated total rate of return?

(A) 7.0%

(B) 7.8%

(C) 8.5%

(D) 9.2%