You Believe That You Can Earn 2% More on Your

question 83

Multiple Choice

You believe that you can earn 2% more on your portfolio if you engage in full time stock research.However,the additional trading costs and tax liability from active management will cost you about 0.5%.You have a $800,000 stock portfolio.What is the most you can afford to spend on your research?

• A) $4,000
• B) $8,000
• C) $12,000
• D) $16,000

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Definitions:

Television Home Shopping

A form of electronic retailing where products are marketed to consumers through live presentations on television.

35- To 64-Year-Old Women

A demographic segment of the population, classified by age, often targeted by marketers for specific products or services.

Factory Outlets

Retail stores directly operated by manufacturers, offering goods at reduced prices, typically those that are overproduced or from past seasons.

Direct Selling

A retail channel where products are sold directly to consumers, bypassing traditional retail stores or intermediaries.