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malfutka [58]
1 year ago
6

You are 40 years old. Your investment portfolio currently consists of: (1) a savings account, with a $16,000 balance, (2) certif

icates of deposit (CDs) worth $20,000, and (3) an investment portfolio consisting of 40% bonds, 40% equities, and 20% cash and cash equivalents. Your bonds are thirty-year U.S. government bonds, while your equities are made up solely of your employer’s stock. Your cash holdings consist of your savings account and CDs. Your employer’s stock paid a 1% dividend and its market value has increased 10% over the last year. The bonds have paid 3.0% interest. The rate of inflation is 2.5%. Your investment goals are mainly focused on retirement, and you have no large purchases planned in the short term.
The value of your current investment portfolio is (180,000 or 144,000 or 108,000 . This consists of 36,000 or 100,000 or 80,000 in cash and cash equivalents, 108,000 or 72,000 or 54,000 in bonds, and 90,000 or 72,000 or 54,000 in equities.

Given the existing composition of your investment portfolio, how would you characteristic your investment strategy? Is it conservative, moderate, or aggressive?

a. The investment strategy is aggressive.
b. The investment strategy is moderate.
c. The investment strategy is conservative.
Business
1 answer:
murzikaleks [220]1 year ago
8 0

Answer:

Option C is correct one.

<u>The investment strategy is conservative. </u>

Explanation:

This is so because most of the money is either in cash or certificates of deposits. Portfolio also consists 40% of bonds with 6% interest rate and 40% equities are also only of the employer's stock. The rate of appreciation and dividend is also very low on this stock. Hence due to all these factors we can say the strategy is conservative.

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Vedmedyk [2.9K]

Answer:

The correct answer is option d.

Explanation:

Unfavorable weather in Florida has adversely affected the production of Florida oranges. The decline in production has led to reduced supply of Florida oranges. This decrease in supply will lead to an increase in the price.  

As Florida oranges and California oranges are substitutes, with the increase in the price of Florida oranges will lead to an increase in the demand for California oranges as people will prefer the cheaper substitute.

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1 year ago
A corporate bond with a face value of $1,000 matures in 4 years and has a coupon rate of 6.25 percent. The current price of the
postnew [5]

Answer:

8.28%

Explanation:

We use the Rate formula shown in the spreadsheet for this question

The NPER specifies the time period.  

Given that,  

Present value = $932

Future value or Face value = $1,000  

PMT = 1,000 × 6.25% ÷ 2 = $31.25

NPER = 4 years × 2 = 8 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

the yield to maturity is 8.28%

6 0
1 year ago
Which best describes one of the primary aims of government fiscal policy? to restrict price changes to put more money into citiz
photoshop1234 [79]
Well it raises the price of goods such as a juice bottle costing 3.00 dollars and adding a 4% increase to that price. also another aim is better jobs for people, making sure that everyone can find a job
8 0
1 year ago
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Orleans Corporation, a U.S. corporation, reported U.S. taxable income of $2,000,000. Included in the computation of taxable inco
Dafna11 [192]

Answer:

$420,000

Explanation:

Calculation for Orleans’s net U.S. tax liability

Using this formula

Tax liability=Taxable income×U.S tax rate

Let plug in the formula

Tax liability=$2,000,000×21%

Tax liability=$420,000

Therefore Orleans’s net U.S. tax will be $420,000. The withholding tax amount of $8,000 was not included because it was already imposed on the dividend.

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The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

The sender i.e. Geroge who not even know the receiver that sells the homeopathy remedies online so this could raise a few issues but it is not to be considered very serious for red-flagged:

  • Since e-commerce arises each and every time that lies between non-known parties online.

This is due to the dirt chape that could make it suspicious also they don't know each other so this should be considered red-flagged.

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No one could suggest the specific brand of homeopathy as it becomes nonprofessional and non-appropriate, so the last option is not be considered.

Therefore we can conclude that The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

Learn more about homeopathy here: brainly.com/question/7460064

8 0
1 year ago
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