The "Dogs of the Dow" Refer to the Stocks Listed

question 59

Short Answer

The "Dogs of the Dow" refer to the stocks listed on the Dow with the highest dividend yield. The table shows the top ten stocks of the "Dogs of the Dow" list in February, 2005. You decide to make a small portfolio consisting of a collection of six of the top ten Dogs of the Dow. $$\begin{array} { | c | c | c | c | } \hline \text { Symbol } & \text { Company } & \text { Price } & \text { Yield } \\\hline \text { SBC } & \begin{array} { c } \text { SBC } \\\text { Communications }\end{array} & 23.62 & 5.46 \% \\\hline \text { GM } & \text { General Motors } & 36.64 & 5.46 \% \\\hline \text { MRK } & \text { Merck } & 28.02 & 5.42 \% \\\hline \text { MO } & \text { Altria } & 63.20 & 4.62 \% \\\hline \text { VZ } & \text { Verizon } & 35.68 & 4.32 \% \\\hline \text { JPM } & \text { JP Morgan Chase } & 37.00 & 3.68 \% \\\hline \text { C } & \text { Citigroup } & 48.38 & 3.64 \% \\\hline \text { PFE } & \text { Pfizer } & 24.35 & 3.12 \% \\\hline \text { DD } & \text { DuPont } & 47.23 & 2.96 \% \\\hline \text { GE } & \text { General Electric } & 35.75 & 2.46 \% \\\hline\end{array}$$
How many portfolios are possible ?
__________ portfolios
How many of these portfolios contain SBC but not MO ?
__________ portfolios
How many of these portfolios contain at most one stock priced above $40 ?
__________ portfolios

---

Definitions:

Corporation

A legal entity distinct from its owners, with its own rights, privileges, and liabilities.

Owned

Referring to assets or properties that are legally possessed by an individual or entity.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Health Club

A facility offering physical fitness services, equipment, and various health and wellness activities to its members.