You are advising a high wealth client about the portfolio you are managing. You are expecting interest rates to start drifting higher in the future and your client has half the portfolio invested in preferred stock. Which of the following statements are you most likely to make? The value of your Preferreds will likely drop so it would be good to reduce your exposure. Preferred Stock does not pay dividends, so interest rate changes are not relevant. The value of your Preferreds will likely rise so raise your exposure to Preterreds even more. The value of Preferreds is unrelated to interest rates because of the fixed dividend so the value of your portfolio will be maintained. Diversify into other Preferreds to exploit the dividend rise once interest rates rise