You Have an Investment Portfolio Comprised of Multiple Stocks and Bonds

question 28

Multiple Choice

You have an investment portfolio comprised of multiple stocks and bonds. You make no attempt to time the market and sell securities only as you need to supplement your retirement income. You have a(n) _____ investment strategy.

• A) Active
• B) Passive
• C) Pure liquid
• D) Liquidity based
• E) Tax-managed

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Definitions:

Interest Expense

The cost incurred by an entity for borrowing funds, represented as a charge against its earnings or net income.

Net Debt

The amount of debt remaining after deducting cash and cash equivalents from total debt obligations.

Equity Holders

Individuals or entities that own equity shares in a company, thus having an ownership interest.

Risk-Free Rate

The return on an investment perceived as having no risk of financial loss, typically associated with government bonds.