A(n) ____ Buys and Holds an Unmanaged Fixed Portfolio of Fixed-Maturity

question 106

Multiple Choice

A(n) ____ buys and holds an unmanaged fixed portfolio of fixed-maturity securities such as municipal bonds.

• A)exchange-traded fund
• B)real estate investment trust
• C)unit investment trust
• D)sector fund

---

Definitions:

Constant Dividend Growth Rate

The rate at which a company's dividend payments are expected to grow at a constant percentage each year.

Expected Return

Expected return is the anticipated average return of an investment over a specified period, taking into account both expected gains and potential losses.

Required Return

The Required Return is the minimum expected return an investor anticipates on an investment to make it worthwhile, encompassing the risk-level associated with the investment.

Marginal Investor

An investor whose actions and choices at the margin are believed to determine the price of a stock.