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LekaFEV [45]
3 years ago
15

Describe the type of bond investment program you think the Shuman family should follow. In answering this question, give appropr

iate consideration to both return and risk factors.
Business
1 answer:
Jet001 [13]3 years ago
3 0

Incomplete question. The full question read;

Max and Veronica Shuman, along with their teenage sons, Terry and Thomas, live in Portland, Oregon. Max is a sales rep for a major medical firm, and Veronica is a personnel officer at a local bank. Together they earn an annual income of around $100,000. Max has just learned that his recently departed rich uncle has named him in his will to the tune of some $250,000 after taxes. Needless to say, the family is elated. Max intends to spend $50,000 of his inheritance on a number of long-overdue family items (like some badly needed remodeling of their kitchen and family room, the down payment on a new Porsche Boxster, and braces to correct Tom’s overbite). Max wants to invest the remaining $200,000 in various types of fixed-income securities.

Max and Veronica have no unusual income requirements or health problems. Their only investment objectives are that they want to achieve some capital appreciation, and they want to keep their funds fully invested for at least 20 years. They would rather not have to rely on their investments as a source of current income but want to maintain some liquidity in their portfolio just in case.

Describe the type of bond investment program you think the Shuman family should follow. In answering this question, give appropriate consideration to both return and risk factors.

Answer:

<u>U.S. Treasury issued Bond</u>

Explanation:

Interestingly, the U.S Treasury issued bonds have a maturity period of 20 years or 30 years. This is the right type of investment the Shuman family should follow since we are told, they <em>"want to keep their funds fully invested for at least 20 years."</em>

Also, U.S Treasury issued bonds usually pay interest every six months giving them the opportunity "to maintain some liquidity in their portfolio".

<u>Since this is a government-issued bond the risk of falling to fraud is lesser making it an ideal option for the Shuman family.</u>

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Why is scarcity a fundamental problem in economics
KATRIN_1 [288]

Answer:

Scarcity or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants.

Explanation:

Society would produce, distribute, and consume an infinite amount of everything to satisfy the unlimited wants and needs of humans.

8 0
2 years ago
In its ads, listerine claims effectiveness but admits to less than perfect taste. this is an example of a(n): one-sided message.
MAXImum [283]

The correct answer is two-sided message. A two-sided message is defined as a persuasive communication by which it presents two view points and in addition, it presents arguments by means of countering the opposing view. This is also known as a two sided appeal.

8 0
3 years ago
All of the following characteristics are common to both monopolistic competition and perfect competition except:________
Dima020 [189]

Answer:

The correct answer is option d.

Explanation:

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A perfect competition has a large number of firms producing identical products. These firms are price takers and face a horizontal line demand curve.  There are very low or no barriers to entry and exit.  

The firms in both market forms are trying to maximize profits. The market demand curve is also downward sloping in both. But the monopolistic competition produces differentiated products and firms are price makers.  

4 0
3 years ago
Create a method name bonus that will read a basic payment and an hour variable as parameter to calculate an extra salary
Gre4nikov [31]

The method name for the basic payment is given below, follow the codes carefully as they are case-sensitive.

<h3>How to create a method name bonus?</h3>

{

   double extra;

   if(basic>=5000)

             extra=basic × hour × 0.3;

   else if (point>=2500)

             extra=basic × hour × 0.4;

   else

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   return extra;

}

Check out the link below to learn more about method name;

brainly.com/question/15681451

#SPJ4

8 0
2 years ago
The Lincoln Company produces a wide range of furniture, such as cabinets, bookcases, and bureaus. It divides its consumer market
SashulF [63]

Lincoln company's strategy of dividing its consumer market will enables it to define customer needs and wants more precisely.

<h3>What is the strategy used by Lincoln company?</h3>

In marketing, this is known as segmentation which involves division of customers according to their segment such as age, needs, gender etc.

Here, as the firm has divided its consumer market into several groups that have similar interests in wooden furniture, this will allow them to define customer needs and wants more precisely.

Therefore, the Option B is correct.

Read more about segmentation

<em>brainly.com/question/7181203</em>

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4 0
2 years ago
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