Fred and Martha Are in Their Seventies and Retired

question 74

Multiple Choice

Fred and Martha are in their seventies and retired. Which one of the following sets of portfolio statistics might best suit their situation if their primary investment goal is current income with limited risk?

• A) Beta of 1.1 and a dividend yield of 5.4%.
• B) Beta of 1.6 and a dividend yield of 6.4%.
• C) Beta of 0.86, and a dividend yield of 4.6%.
• D) Beta of 0.83 and a dividend yield of 6.3%.

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Definitions:

Formal Promotions

Organized, official advancement of employees to higher positions with more responsibility within a company.

Baby Boomers

A demographic group born during the post-World War II baby boom, between the years 1946 and 1964.

Generation X

The demographic cohort following the baby boomers and preceding the Millennials, typically defined as individuals born from the early-to-mid-1960s to the late 1970s.

Millennials

A demographic cohort following Generation X, typically referred to those born from the early 1980s to the mid-1990s to early 2000s.