Workplace reviews and discussion: 群益金鼎證券股份有限公司

Although learning can be stressful and uncomfortable, like having itchy and sore feet, the knowledge in each unit is worth the effort. Mom and Dad are too tired, working overtime every day, so they cannot always be there for you. But the notes you take and the effort you put in will eventually earn applause and encouragement.

One day, a son asked his father about planning to use a total of $900,000, investing it in installments in two stocks:

New Stock A (growth-oriented): The expected annual return is 12%, but it is highly volatile. The projected return can only potentially be achieved if the investment is held in full for 6 months after each installment.

Old Stock B (value-oriented): The expected annual return is 6% and it is more stable. After each installment, it only needs to be held for 3 months to achieve its expected return.

The investor plans to invest in installments as follows:

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

Assume that after each installment, the funds realize the stock's return in a lump sum at the end of the specified 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%