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Dahasolnce [82]
3 years ago
14

A 60-year old man is looking to create a portfolio that will provide current income and preservation of capital. Which of the fo

llowing portfolios would be the BEST recommendation to the client?
A. Long term corporate bonds rated AA or better, high yield corporate bonds and blue chip stocks
B. Treasury bills, a money market mutual fund and bank certificates of deposit
C. Treasury STRIPS, corporate income bonds and PO tranches
D. Growth stocks, defensive stocks and foreign stocks
Business
1 answer:
ohaa [14]3 years ago
7 0

Answer:

The correct answer is letter "B": Treasury bills, a money market mutual fund and bank certificates of deposit.

Explanation:

One of the distinctive features of Treasury Bills is that the government does not periodically pay the holder's interest, instead, the securities are priced under face value, which results in a profit at maturity. Treasury bills offer two major benefits: their lack of risk and tax advantages over other investment opportunities.

Mutual funds are a pool of assets put together to reduce risk and provide small investors the opportunity to access a professionally managed investment vehicle. Certificates of Deposit (CDs) require account holders to keep their money for a certain period so they can benefit from higher interest rates.

Therefore, <em>Treasury Bills, mutual funds, and CDs represent the best investment vehicles the 60-year-old man can choose from to generate income while preserving capital.</em>

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lorasvet [3.4K]
<span>This source would be a synopsis. A synopsis is a brief summary or outline of a book, which aligns with Alices' speech. While Alices' speech may not formulate any new viewpoints of this book, her synopsis may make her peers understand the general themes the book encompasses. That said, her speech serves as a great template for others that may want to read the book.</span>
3 0
4 years ago
Refer to the given list of assets. 1. Large-denominated ($100,000 and over) time deposits 2. Noncheckable savings deposits 3. Cu
Irina-Kira [14]

Answer:

A. items 2, 4, 7, and 8

Explanation:

As we know that the near money should also be known as the quasi-liquid money and this comprise of high liquid money not only used for the transactions as they are only part of M2 money so it cant be involved in M1 money

And, the other options are related to currency or the instruments instead having less liquidity levels

Therefore the option a is correct

4 0
3 years ago
To help herself remember the items she was to get from the market, Anna repeated the five-item list over and over under her brea
pickupchik [31]

Answer:

rehearsal

Explanation:

This information processing strategy is best referred to as a rehearsal.

Repeating the same thing over and over again helps to memorize and gain mastery of a particular detail or concept.

  • For Anna, rehearsing the item list helps her to process and hold on to the bits of information she has better.
  • Other information processing strategy are organization, elaboration, mnemonic, systematic searching.
  • They all serve various needs based on the information to be processed.
8 0
3 years ago
You purchased a machine for $ 1.19 million three years ago and have been applying​ straight-line depreciation to zero for a​ sev
sp2606 [1]

Answer:

$748,820

Explanation:

The computation of the incremental cash flow is shown below:

As we know that

Incremental cash flow = Sale price - (sale price - book value) × tax rate

where,

Sale price is $791,000

The book value is

= Purchase value - accumulated depreciation

= $1,190,000 - $1,190,000 ÷ 7 years × 3 years

= $1,190,000 -  $510,000

= $680,000

So, the incremental cash flow is

= $791,000 - ($791,000 - $680,000) × 38%

= $791,000 -  $42,180

= $748,820

We simply applied the above formula

4 0
3 years ago
A Machine makes 5 buttons at a time each doll shirt gets 5 buttons how many doll shirts can be finished with 5 buttons
Tems11 [23]

Answer:

1

Explanation:

If each doll shirt gets 5 buttons then only one can be finished with 5 buttons.

6 0
4 years ago
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