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aleksandrvk [35]
3 years ago
8

Both a wife and her husband work in the airline industry. They are in their 40s and they have a high tax bracket and are concern

ed about their after tax rate of return. A meeting with their financial planner reveals they are primarily focused on long term capital gains and they will need at least a 9% to 11% average rate of return to meet their retirement goals. They desire a diversified portfolio and liquidity is not currently a major concern. If you had to choose from the list below which of the following asset allocations seems to best fit their situation?a. 10% money market; 40% long term bonds; 10% commodities; 40% high dividend paying stocksb. 0% money market; 60% long term bonds; 40% stocksc. 10% money market; 30% long term bonds; 10% commodities; 50% high dividend paying stocksd. 5% money market; 30% long term bonds; 5% commodities; 60% stocks, most with low dividends and high growth prospects
Business
1 answer:
Serjik [45]3 years ago
8 0

Answer: % money market; 30% long-term bonds; 5% commodities; 60% stocks, most with low dividends and high growth prospects (option D)

Explanation:

Since liquidity is not currently a major concern to the couple, investment in the money market can be low and also no investment is needed in the high dividend paying stocks.

Option A and C involve significant investment in the high dividend yielding stocks so they're ruled out. We are now left with Option B and D

Long term bonds usually pay less than the required rate that this couple is considering, therefore a significant amount must be invested in high yield return securities. This will make option D the right answer since it fulfils all the required objectives.

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At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites
Kobotan [32]

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False

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4 0
3 years ago
The big problem with average-cost pricing is that:A. fixed costs are hard to estimate.
zavuch27 [327]

Answer:

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A: With the help of average cost pricing, the fixed cost can quickly estimate. Therefore, it cannot be the answer.

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D: It is easy to estimate profit if there is an average cost pricing.

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6 0
3 years ago
A municipal bond carries a coupon rate of 5.45% and is trading at par. What would be the equivalent taxable yield of this bond t
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7.78%

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3 years ago
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