29. Which of the following portfolios asset mix would you consider most appropriate for a senior?

a) 10 % cash, 40 % long-term bonds, 50 % conservative stocks.

b) 10 % cash, 20% medium-term bonds, 25% long-term bonds, 25 % preferred

shares, 20 % conservative stocks.

c) 5% cash, 25 % medium-term bonds, 30 % long-term bonds, 40 %

conservative stocks.

d) 5 % cash,30 % medium-term bonds, 30 % long-term bonds, 35 %

The holdings of a large-cap equity fund are very close to the market weightings of

the sector's benchmark. What strategy is the fund manager likely following?

a) Closet indexing.

b) Passive indexing.

c) Active allocation.

d) Sector rotation.

conservative stock

32. A portfolio has a market value of $455,000 at the start of the year. The

portfolio has an end of year value of $610,000. What is the pre-tax return?

on the portfolio?

a) 25.41 %

b) 38.43 %

c) 34.06 %

d) 74.59 %

34. Which of the following is not a feature of Target-dated Funds?

a) They trade on the stock market.

b) The asset allocation changes from higher risk to lower risk as the maturity date approaches

c) Maturity date is selected when buying fund based on some goal.

d) Maturity date and glide path.