Question
QUESTION 139 Lew Toll retires early at age 55 after a long career as a successful chemist. Lew sells several patents he developed for scientific
QUESTION 139
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Lew Toll retires early at age 55 after a long career as a successful chemist. Lew sells several patents he developed for scientific tools and has in excess of $10 million in investable assets. Lews children are independent, and he has few financial obligations. Lew has constructed his current portfolio which is weighted heavily toward fixed-income securities with only 10% in large cap equities. Lew describes himself as highly conservative and suggests to his financial advisor that all of his wealth should be invested in Treasury securities. Lews ability to take risk is most likely:
a. Low.
b. Moderate.
c. Moderate to high.
d. High.
QUESTION 140
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Manor Endowment (ME) funds medical research. ME has an average spending rate of 5.3% over the past three years, while inflation has averaged 1.6%. The endowments portfolio generated a 19% return last year. For the upcoming year, MEs return objective is closest to:
a. 5.3%.
b. 6.9%.
c. 12.7%.
d. 19.0%.
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