Question
Janice is a retiree whose investment objectives include: 20% safety of principal; 50% income; and 30% growth. She is willing to take some risk to
Janice is a retiree whose investment objectives include: 20% safety of principal; 50% income; and 30% growth. She is willing to take some risk to earn an above average rate of income with some variability, and capitals gains in order to stay ahead of inflation. Which investment best fulfils her multiple objectives?
Growth stocks
Preferred shares
Short-term bonds
Cash equivalents
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The detailed answer for the above question is provided below For Janice who has investment objectives of safety of principal income and growth along with a willingness to take some risk a potential investment that could align with her objectives might be Preferred shares Heres a breakdown Safety of Principal 20 Preferred shares although not entirely riskfree often offer more security of principal compared to growth stocks They typically provide a fixed dividend allowing for a degree of stability Income 50 Preferred shares are known for providing higher dividends compared to common stocks They can offer a regular income stream meeting her income objective ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
