1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
weqwewe [10]
3 years ago
6

An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stre

ssed about having enough income because her cost of living has been increasing by more than 10% annually. Her current portfolio composition consists of:
40% Money Market Fund
50% Bonds
10% Equities
What changes should you suggest to her portfolio?


A. Reduce the Money Market Fund allocation by 10% (to 30%) and put the released funds in commodities such as gold
B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
C. Liquidate the entire Money Market Fund allocation and put the released funds in Equities, bringing that allocation up to 50%
D. Liquidate the entire Money Market Fund allocation and put the released funds in U.S. Treasury securities
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
6 0

Answer:

B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds

Explanation:

First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.

Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.

You might be interested in
The project will require an investment of $10,000 in new equipment. the equipment will have no salvage value at the end of the p
maks197457 [2]

Answer:

The answer is attached

Explanation:

Download xlsx
4 0
3 years ago
What type of a seating arrangement is suitable in case a meeting requires intense interaction
ankoles [38]

I believe the answer you are looking for is open seating arrangement - nobody has assigned seats and people can move around freely to interact with whoever they like. This improves collaboration and communication among the people in the meeting.

4 0
3 years ago
The acquisition cost of a certain raw material changes frequently. The book value of the inventory of this material at year end
kkurt [141]

Answer: B. FIFO method

Explanation: The inventory prices of goods as calculated by a firm will remain the same at year end if a firm's inventory price is automatically updated on account of any additional inventory purchase and also if done on a periodic basis. This will occur only when the inventory pricing system is based on First-in-First-out method, whereby the prices of first inventory purchase is first associated or applied on goods sold until the unit in the inventory is exhausted. This allows prices of goods to move based on period of purchase where older prices gets precedence over the newer inventory purchase.

5 0
3 years ago
The Phelps Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at th
Lynna [10]

Answer:The correct option is C  = 0.98%

Explanation:

Ok so we do 25.50 - 2.80 because its being taken out

then we divide the answer we get by 10

or multiply it by .10

Hope this helps :)

3 0
2 years ago
What is the prime rate? a. the prime rate is the best interest rate that banks offer their most creditworthy customers. b. the p
trapecia [35]

Prime rate is (a) the best interest rate that banks offer their most creditworthy customers.

A prime rate is decided by the bank to lend money to its customers where the credit giving is decided on the basis of the credit history and points on the customers formally known as the credit rate of investment.

It totally depends upon the allowance of credit by financial institutions and then the payment made by the loan taking customers within a stipulated time frame.

To learn more about prime rate here,

brainly.com/question/28235888

#SPJ1

3 0
1 year ago
Other questions:
  • Suppose a stock market crash makes people feel poorer this decrease in wealth would induce people to desire __________. a decrea
    11·1 answer
  • chase lives in oregon but works for a company that is located in florida. what business trend is this an example of ?
    15·1 answer
  • Which of the following statements is correct?a.An advantage of the corporate form for many businesses is the fact the corporate
    10·1 answer
  • Maria usually sleeps until 8 am, but tomorrow she needs to be at work at 6 am. She should probably _____.
    13·2 answers
  • Which qualities will build an employer’s dependability and reliability on an employee?
    10·1 answer
  • Brainliest ASAP helppppp please
    13·2 answers
  • <
    11·1 answer
  • Poeple who own operate and take on the financial risk of operating a business are called?​
    14·1 answer
  • In which one of the following instances is the rivalry among competing sellers generally
    14·1 answer
  • Willing to give a lot of points
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!