Regis and Kelly Plan to Invest in Corporate Securities

question 306

Multiple Choice

Regis and Kelly plan to invest in corporate securities.While Regis plans to retire next year on his 65^th birthday,Kelly is celebrating her first job after college and her 22^nd birthday.Which of the two investors would be well advised to choose a more conservative investment strategy?

• A)Regis
• B)Kelly
• C)A conservative investment strategy is always the best strategy.
• D)It depends on whether they want to invest in stocks or bonds.

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Definitions:

Cash Receipts

The collection of money, typically in the form of cash or checks, by a business from its customers for goods or services provided.

Cash Disbursements

Outflows of cash for expenses, purchase of assets, or repayment of debt by a business within a given period.

Manufacturing Overhead Budget

A financial plan that estimates the expected costs related to manufacturing overhead for a specific period.

Variable Overhead Rate

A financial metric that represents the costs that vary with production levels in manufacturing, calculated as variable overhead costs divided by a measure of activity.