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Nikitich [7]
2 years ago
8

Ethel is a widow and is approaching 75 years of age. Historically, she has deposited all of her money into her bank savings acco

unt and invested in certificates of deposit (CDs) offered by her bank. The yields from her savings accounts and on CDs have gone down significantly. Ethyl would like a higher yield from her investments than what she is currently achieving so she comes in to see you, an agent at a broker/dealer. Which of the following would be an appropriate investment strategy for Ethyl, given her history and her situation?
[A] Ethel should maintain an appropriate savings balance to cover unforeseen circumstances and continue to invest in CDs, despite her desire for higher yields.

[B] Ethel should maintain an appropriate savings balance to cover unforeseen circumstances and should consider investing in a few large-cap securities that the agent will pick for her.

[C] Ethel should maintain an appropriate savings balance to cover unforeseen circumstances and should consider investment in a balanced mutual fund, which carries lower risk, higher yields than CDs, and the potential for growth.

[D] Ethel should maintain an appropriate savings balance to cover unforeseen circumstances and should consider investment in a corporate securities income fund, comprised of small, mid, and large capitalization corporate bonds and corporate preferred stock.
Business
1 answer:
7nadin3 [17]2 years ago
5 0

Answer: C. Ethel should maintain an appropriate savings balance to cover unforeseen circumstances and should consider investment in a balanced mutual fund, which carries lower risk, higher yields than CDs, and the potential for growth

Explanation:

Given Ethel situation and history, Ethel should maintain an appropriate savings balance to cover unforeseen circumstances.

As a result of her age and due to the fact that she possesses a limited investment experience, there may be too much risk for her if she focuses on large-cap securities

Therefore, she should should consider investment in a balanced mutual fund, which carries lower risk, higher yields than CDs, and the potential for growth.

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If three people work for a company: 
A, who has worked there for 5 years,
B, who has worked there for 20 years,
and C, who has worked there for 1 year,
B has seniority over A and C, A has seniority over C. In most companies, this would mean that barring other factors, C would be fired first because C has the lowest seniority.  <span />
4 0
3 years ago
Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for
Tanzania [10]

Answer:

499.80

Explanation:

There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.

Mikey's long term capital gain = $4,950 - $2,400 = $2,550

if he paid regular income taxes = $2,550 x 39.6% = $1,009.80

since he pays capital gains taxes = $2,550 x 20% = $510

That means he saves $1,009.80 - $510 = 499.80

3 0
3 years ago
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $31,098,000, net operating inco
miskamm [114]

Answer:

I. 14.50%

II. 3.55

III. 51.48%

Explanation:

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Kindly check attached picture for detailed explanation

6 0
3 years ago
Property risks are those
Hatshy [7]

Answer:

a

Explanation:

Property risk is an example of a pure risk.

Pure risks are risks in which loss is the only possible outcome. It could be full loss or partial loss. Other examples of pure risks are personal and liability risks

Property risk is the risk that a person or company's property would be damaged or lost.

For example, if a building is set on fire or if a car is stolen

5 0
3 years ago
What are the implications of sharing confidential material information?
Norma-Jean [14]
The implication of sharing confidential material information is about having to keep a certain thing private in a way that it should be remained secret and hidden unless it has been given consent by the person who holds the privacy to be told to another party. It is not release carelessly and should be handled with care as it should be kept by the person withholding the information.
5 0
2 years ago
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