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:

Salary

Regular payments usually made monthly or bi-weekly to an employee, often annualized, for performing a job.

Payroll Taxes

Levies charged to both employers and workers, determined as a proportion of the wages that businesses distribute to their personnel.

Federal Government

The national government of a federated state, which holds the authority to govern at a national level as distinct from regional or local levels.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.