If the Economic Outlook Was Such That You Expected Corporate

question 18

Multiple Choice

If the economic outlook was such that you expected corporate earnings to decline,consumers have excessive levels of debt,and there is significant overcapacity in the technology sector,then an appropriate asset allocation policy would be to:

• A) Overweight equity especially technology stocks and underweight bonds
• B) Underweight equity especially technology stocks and overweight bonds
• C) Overweight equity especially technology stocks and overweight bonds
• D) Underweight equity especially technology stocks and underweight bonds
• E) None of the above

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Definitions:

Unlimited Liability

A legal structure in business where the owner's personal assets can be used to satisfy the business's debts and liabilities.

State Statute

Legislation enacted by a state legislature or established by a state court.

Earnings Claims

Statements made by a company or franchise about the potential or actual financial performance of a business opportunity.

Reasonable Basis

A standard of evidence that suggests a belief or action is supported by a fair amount of facts or logical assumptions, often used in legal and regulatory contexts.