Question
You are 30 years old and willing to invest $2,000 every other month for the next 15 years. You prefer a conservative-to-moderate investment strategy and
You are 30 years old and willing to invest $2,000 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. | |
Blue Panda Ice Cream Company's sales and profits are tied to customer incomes and the state of the economy. As a result, it has a beta of about 1.0. | |
Black Sheep Broadcasting has the lion's share of the market and has widespread name recognition. The company earns above-average earnings, pays reasonable dividends, and has a high P/E ratio. It has a beta of 1.75. | |
Lumbering Ox Truckmakers has invented a truly new product that may revolutionize its industry. Lumbering Ox's share price is rising but if the company can't get its essential inventory and critical components or if its marketing plan isn't successful then its sales and profits will decrease significantly and the company could fail. The result is a fluctuating P/E ratio and a beta of 2.30. |
If you want to be able to purchase additional shares before new shares are offered to the public, then you should ensure that common shares have a _____(market right/ preemptive right/ proportional right)
------------------
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 ___(a full-service brokerage firm/ an online discount brokerage)
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 __(market/ stop-loss/ limit) order.
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 ___(market/ stop-loss/ limit) order.
If you wanted to invest in a income stock company (based on index), you should invest in If you wanted to invest in a cyclical stock company, you should invest in. If you wanted to invest in a growth stock company, you should invest in If you wanted to invest in a speculative stock company (based on industry), you should invest in 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 pays you a stable cash flow every six months, then you should consider investing in If you want to invest in a security that allows you to participate in the selection of a company's management team, including its board of directors, then you should invest in If you wanted to invest in a income stock company (based on index), you should invest in If you wanted to invest in a cyclical stock company, you should invest in. If you wanted to invest in a growth stock company, you should invest in If you wanted to invest in a speculative stock company (based on industry), you should invest in 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 pays you a stable cash flow every six months, then you should consider investing in If you want to invest in a security that allows you to participate in the selection of a company's management team, including its board of directors, then you should invest inStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started