Workplace reviews and discussion: 富邦綜合證券股份有限公司

Although learning can be stressful and uncomfortable, like having an itchy and painful foot, the knowledge in 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 earn applause and encouragement in the future.

One day, a son asked his father about a plan to invest a total of $900,000 in two stocks through installment investments:

New Stock A (growth-oriented): The expected annual return is 12%, but it is highly volatile. The projected return can only 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 relatively stable. After each installment, it only needs to be held for 3 months to achieve its expected return.

The investor plans to make installment investments as follows:

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

Assume that after each installment, the funds realize returns in a lump sum at the end of the holding period specified for that stock, and cannot be used before the returns are 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%