A family will retire in a few years. They have a high tax bracket and are concerned about their after-tax rate of return. A meeting with their financial planner reveals that they are primarily focused on safety of principal and will need a 6% to 8% average rate of return on their portfolio. They desire a diversified portfolio, and liquidity is likely to be a concern due to health reasons. Which of the following asset allocations seems to best fit this family's situation?
A. 10% money market; 50% intermediate-term bonds; 40% blue chip stocks, many with high dividend yields
B. 0% money market; 60% intermediate-term bonds; 40% stocks
C. 10% money market; 30% intermediate-term bonds; 60% high-dividend-paying stocks
D. 5% money market; 35% intermediate-term bonds; 60% stocks, most with low dividends
A. 10% money market; 50% intermediate-term bonds; 40% blue chip stocks, many with high dividend yields
You might also like to view...
People can emerge with different perceptions of the same object because of three perceptual processes. List and briefly describe these processes
What will be an ideal response?
Presented below are terms preceded by letters a through h and followed by a list of definitions 1 through 8. Enter the letter of the term with the definition, using the space preceding the definition.(a) Unfavorable variance(b) Fixed budget performance report(c) Overhead cost variance(d) Efficiency variance(e) Spending variance(f) Flexible budget performance report(g) Quantity variance(h) Favorable variance________(1) Results from a comparison of actual cost or revenue to budget that contributes to a lower income.________(2) A report that compares actual results with the results expected under a fixed budget.________(3) When management pays an amount different from the standard price to acquire an item.________(4) Results from a comparison of actual cost or revenue to budget that
contributes to higher income.________(5) Difference in variable overhead when the standard allocation base expected for actual production differs from the actual allocation base.________(6) Difference between actual quantity of an input and the standard quantity of the input.________(7) Difference between the total overhead cost applied to products and the total overhead cost actually incurred.________(8) A report that compares actual performance and budgeted performance based on actual sales volume or other activity level. What will be an ideal response?
In an agency for a fixed term, such as one year, prior to the end of the stated period, the agent
has: A) The right, but not the power, to terminate the arrangement. B) The power, but not the right, to terminate the arrangement. C) Both the power and the right to terminate the arrangement. D) Neither the power nor the right to terminate the arrangement.
TOMS Shoes generates interest in its products without a large advertising budget. It uses a Facebook page to create buzz. This is an example of a
A. strategic action. B. focused advantage. C. differentiated focus. D. tactical action.