Business
Business, 15.04.2020 02:29, littlebrain2672

Suppose Frances currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bonds; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 4.5% to 9.5%. In order to do so, she must do which of the following

a) Accept more risk
b) Sell some of her bonds and use the proceeds to purchase stocks
c) Sell some of her stocks and place the proceeds in a savings account
d) Sell some of her stocks and use the proceeds to purchase bonds

answer
Answers: 1

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