Business, 24.03.2020 18:12, jada741

A married couple, ages 55 and 52, with no children, are both employed at DEF Corporation. They have asked for an evaluation of their current portfolio. They have a combined annual income of $200,000 per year and a fully paid home worth $500,000. Their current portfolio shows:$50,000 Common Stock of DEF Corp in a 401K account
$100,000 Large Cap Growth Fund
$150,000 Government Bond Fund
$150,000 Corporate Bond Fund
$200,000 Money Market Fund
Both intend to retire in 20 years and are conservative investors, looking for moderate growth and moderate risk. Which of the following recommendations is BEST for this couple?

A. The current portfolio allocation is consistent with their stated investment objective and risk-tolerance level
B. The portfolio should be reallocated based on their stated investment objective, reducing the cash and bond percentage by 50% and using the proceeds to buy a small or mid-cap growth mutual fund
C. The portfolio is overweighted in fixed income securities, which should be completely liquidated and the proceeds used to buy aggressive growth stocks
D. The current portfolio allocation overexposes the couple to stock-specific risk if the fortunes of DEF Corp. decline in the future

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 02:20, lovehelping1564

Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?

Answers: 2

continue

Business, 22.06.2019 11:30, Coltong121

Buyer henry is going to accept seller shannon's $282,500 counteroffer. when will this counteroffer become a contract. a. counteroffers cannot become contracts b. when henry gives shannon notice of the acceptance c. when henry signs the counteroffer d. when shannon first made the counteroffer

Answers: 3

continue

Business, 22.06.2019 15:50, jackievelasquez7881

Singer and mcmann are partners in a business. singer’s original capital was $40,000 and mcmann’s was $60,000. they agree to salaries of $12,000 and $18,000 for singer and mcmann respectively and 10% interest on original capital. if they agree to share remaining profits and losses on a 3: 2 ratio, what will mcmann’s share of the income be if the income for the year was $15,000?

Answers: 1

continue

Business, 22.06.2019 19:00, 3peak101

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is

Answers: 2

continue

Do you know the correct answer?

A married couple, ages 55 and 52, with no children, are both employed at DEF Corporation. They have...