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Scenario: You are 29 years old and willing to invest $1,750 every other month for the next 15 years. You prefer a conservative-to-moderate investment strategy

Scenario: You are 29 years old and willing to invest $1,750 every other month for the next 15 years. You prefer a conservative-to-moderate investment strategy and have a risk-averse to risk-neutral tolerance for risk. Your highest priority in your investment strategy is preparing you and any family that you might have in the future for your retirement. You also regularly set aside money into savings and CDs to pay for vacations or similar large-ticket items. You've assembled a table of information and company descriptions for some new stocks and bonds that you are thinking about adding to your investment portfolio. Currently, your portfolio consists of 20 blue-chip stocks, and you're thinking about increasing your diversification by adding some different types of stocks. The following are descriptions of potential firms to be added to your portfolio: Happy Dog Gas Company pays a cash dividend that is greater than most other companies, and has a beta of 0.90. Green Fish Semiconductor Company is a large diversified provider of internet, network, and wireless services. It will be the first firm to commercialize an underwater wifi system. Napoleon Nanotech Company has existed for four years and is still a high-risk investment. It has had good years and not-so-good years, and Napoleon's stock currently trades for $0.73 per share. Pheasant Pharmaceuticals is growing at a reasonable pace but pays a cash dividend that is greater than that paid by other pharmaceutical companies. The company's beta is 0.80. If you wanted to invest in a income stock company (based on index), you should invest in_________.

(options: A. Happy Dog Gas Company B. Napolean Nanotech Company. C. Green Fish Semiconductor Company. D. Pheasant Pharmaceuticals) If you wanted to invest in a tech stock company, you should invest in ________.

(options: A. Happy Dog Gas Company B. Napolean Nanotech Company. C. Green Fish Semiconductor Company. D. Pheasant Pharmaceuticals) If you wanted to invest in a penny stock company, you should invest in ________.

(options: A. Happy Dog Gas Company B. Napolean Nanotech Company. C. Green Fish Semiconductor Company. D. Pheasant Pharmaceuticals)

If you wanted to invest in a income stock company (based on industry), you should invest in _________. (options: A. Happy Dog Gas Company B. Napolean Nanotech Company. C. Green Fish Semiconductor Company. D. Pheasant Pharmaceuticals)

Now, think about the available attributes of common and preferred stock issues and bond issues, and answer the following questions. If you want to invest in a security that offers the opportunity for the payment of fluctuating and potentially extraordinary cash payments every quarter, then you should consider investing in ___________.

(options: A. Bonds. B. Common Stock. C. Preferred Stock) If you want to invest in a security that allows you to participate in the selection of a companys management team, including its board of directors, then you should invest in _________. (options: A. Bonds. B. Common Stock. C. Preferred Stock)

If you want to ensure that you receive any unpaid, or skipped, dividend payments, then you should make sure that your preferred stock issue is ___________. (options: A. A countercyclical issue. B. A cumulative issue. C. A convertible issue)

Assume that youve selected the investments that you want to add to your portfolio. Now you must consider who to contact to make the purchases and the types of orders to place. If you wanted to discuss and verify your ideas with a real person (broker) and review firm-provided research reports, then you should use ________. (options: A. an online discount brokerage. B. a full-service brokerage firm)

If you wanted to place a buy order that requires your new shares to be purchased at the best possible price that does not exceed a specified price, then you should ask for a ___________ order. (options: A. Stop-loss. B. Limit. C. Market)

If you wanted to place a buy order that requires your new shares to be purchased at the current prevailing price with no other limits or special instructions then you should ask for ________ order.

(options: A. Stop-loss. B. Limit. C. Market)

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