Your Friend's Portfolio Manager Has Suggested Two High-Yielding Stocks: Consolidated

question 16

Multiple Choice

Your friend's portfolio manager has suggested two high-yielding stocks: Consolidated Edison (ED) and Royal Bank of Scotland (RBS-K) . ED shares cost $40, yield 5.5% in dividends, and have a risk index of 1.0 per share. RBS-K shares cost $25, yield 7.5% in dividends, and have a risk index of 1.5 per share. You have up to $24,000 to invest and would like to earn at least $1,320 in dividends. How many shares (to the nearest whole number) of each stock should you purchase in order to meet your requirements and minimize the total risk index for your portfolio ?

• A)Buy 960 shares of ED and 0 shares of RBS-K
• B) Buy 0 shares of ED and 600 shares of RBS-K
• C) Buy 0 shares of ED and 960 shares of RBS-K
• D) Buy 600 shares of ED and 0 shares of RBS-K
• E) no solution

Understand the concepts of stress, frustration, conflict, and pressure and their differences.

Identify different types of conflicts and their characteristics.

Recognize how stress affects health and well-being.

Examine the biopsychosocial model in psychology.

---

Definitions:

Dividend Yield

The ratio of the dividend per share to the share price, illustrating the annual dividend payout of a company in comparison to its share price.

Selling Price

The amount of money for which something is sold in the market, determined by factors like cost, demand, and competition.

Annual Discount Rate

The interest rate used in discounted cash flow analysis to calculate the present value of future cash flows.

Annual Growth

The year-over-year increase, usually presented as a percentage, in a particular metric such as revenue, earnings, or assets.