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A comparison of two portfolios shows the following asset allocation: Portfolio A: 20% stocks; 50% bonds; 30% money market Portfollo B: 80% stocks; 10% bonds;

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A comparison of two portfolios shows the following asset allocation: Portfolio A: 20% stocks; 50% bonds; 30% money market Portfollo B: 80% stocks; 10% bonds; 10% money market. Which of the following statements best describes the portfolios? Portfolio A would be more appropriate for a person in their 30 s than a person in their 50s. Portfolio B is recommended for most people because it is higher risk. Portfolio B would be more appropriate for a person in their 30 s than for a person in their 50 s. Portfolio A would be more appropriate for a person in their 60 s than Portfolio B because it will give them higher returns. 19. 25 points You buy a rental property for $250,000 (all cash, no mortgage). The net rental income the first year is $14,000 and, after one vear, the property is worth $260,000. What is your annual rate of return on this irmestment? 5.4% 5.6% 9.2% 9.6% 25 points Which of the following is not a passive imvestment strategy? Timing Buy and hold Indexing Laddering

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