Utility function is a good idea, but I can’t see them giving us a question where we have to find the breakeven, then determine whether his amount is higher or lower- way to ambiguous.
B…5 year is NOT a long time, hence C is outta the picture. Lets do this guys, much kudos to those posting these
Even 12% is lower, but it’s not long term(only 5- years). More wight on preferred stocks in Mutual Fund A, that’s similar more weight on bond. Of course, it conflicts the investor’s expectation.
c
C
If his #1 goal is long-term capital appreciation, would he want 40% of his portfolio in high dividend stocks?
hezagenius Wrote: ------------------------------------------------------- > If his #1 goal is long-term capital appreciation, > would he want 40% of his portfolio in high > dividend stocks? The preferred stocks are going to pay out more than that. Also using DRIP program high dividend stocks would be OK and contribute a significant amount to equity returns.
Answer please hellscream??
Sorry, forgot to put answer. yes, sbmarti2 was right! B, and he gave the good epxlanation!
Is this a question straight out of the book word for word or did you make it up?
Soccertom9 Wrote: ------------------------------------------------------- > Is this a question straight out of the book word > for word or did you make it up? It is from Qbank