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

The expression 1.08s+1.02b 1.08 s+1.02 b predicts the end-of-year value of a financial portfolio where s s is the value of stocks and b b is the value of bonds in the portfolio at the beginning of the year.\newlineWhat is the predicted end-of-year value of a portfolio that begins the year with $200 \$ 200 in stocks and $100 \$ 100 in bonds?\newline$ \$

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Q. The expression 1.08s+1.02b 1.08 s+1.02 b predicts the end-of-year value of a financial portfolio where s s is the value of stocks and b b is the value of bonds in the portfolio at the beginning of the year.\newlineWhat is the predicted end-of-year value of a portfolio that begins the year with $200 \$ 200 in stocks and $100 \$ 100 in bonds?\newline$ \$
  1. Identify Values: Identify the values given for stocks and bonds at the beginning of the year.\newlineStocks at the beginning of the year ss: $200\$200\newlineBonds at the beginning of the year bb: $100\$100\newlineThe expression to calculate the end-of-year value is 1.08s+1.02b1.08s + 1.02b.
  2. Substitute Given Values: Substitute the given values into the expression.\newlineEnd-of-year value = 1.08×($200)+1.02×($100)1.08 \times (\$200) + 1.02 \times (\$100)
  3. Perform Calculations: Perform the calculations for each part of the expression.\newlineCalculate the value from stocks: 1.08×($200)=($216)1.08 \times (\$200) = (\$216)\newlineCalculate the value from bonds: 1.02×($100)=($102)1.02 \times (\$100) = (\$102)
  4. Calculate Total Value: Add the calculated values to find the total end-of-year value of the portfolio.\newlineTotal end-of-year value = $216\$216 (from stocks) + $102\$102 (from bonds) = $318\$318

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