Please explain, thank you!
STOCK MARKET IS RISK FREE Exercises: 1. (8 points) Develop a monthly investment plan
for an engineer that wants to maximize their wealth. Summarize your general strategy, and
present graphical results showing the accumulated net worth per month. Assume that the
engineer: - must pay taxes according to Puerto Rico's tax rules, - must pay taxes in April of each
year (except for the first April because the engineer has no income in the previous year), - does
not pay taxes on interest earned via an individual retirement account (IRA) (but interest earned
via other instruments is income that is part of gross income), - has all needs (rent, car, food, etc.)
covered in the Monthly Expenses (see Table 1), and -
needs a plan for a 5-year period. Table 1.
Personal Financial Data Table 2. Investment and Saving Options