Question
4. Assume that a wealthy woman comes to you looking for some investment advice. She is in her early forties and has $250,000 to put
4. Assume that a wealthy woman comes to you looking for some investment advice. She is in her early forties and has $250,000 to put into stocks. She wants to build up as much capital as she can over a 15-year period and is willing to tolerate a fair amount of risk.
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What types of stocks do you think would be most suitable for this investor? Come up with at least three types of stocks, and briefly explain the rationale for each.
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Would your recommendations change if you were dealing with a smaller amount of moneysay, $50,000? What if the investor were more risk-averse? Explain.
6. Briefly define each of the following types of investment programs and note the kinds of stock (blue chips, speculative stocks, etc.) that would best fit with each.
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A buy-and-hold strategy
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A current-income portfolio
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Long-term total return
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Aggressive stock management
PLEASE ANSWER ALL BULLETPOINTS
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