Which of the following is the most liquid asset?
a. Capital goods
b. Stocks and bonds with low risk.
c. Stocks and bonds with a high risk.
d. Funds in a checking account.
Which of the following is the most liquid asset?
a. Capital goods
b. Stocks and bonds with low risk.
c. Stocks and bonds with a high risk.
d. Funds in a checking account.
Related questions
Match the following types of stocks that would typically be found in each portfolio
| a.) Growth funds | (1) foreign stocks |
| b.) U.S. government bond funds | (2) Moves money from stocks to bonds to maximize return |
| c.) growth and income funds | (3) market basket taht represent the S&P 500 |
| d.) life cycle fund | (4) mix of stocks, bonds, and money market securities |
| e.) sector funds | (5) 65% of stocks from the technology industry |
| f.) index funds | (6) dividend-paying blue-chip stocks |
| g.) balanced funds | (7) tailored to investor characteristics |
| h.) international funds | (8) high-growth and high P/E companies |
| i.) small company funds | (9) companies with strong earnings and some dividends |
| j.) asset allocation funds | (10) federal agency securities |
| k.) aggressive growth funds | (11) companies that probably trade on the OTC market |
| Both a wife and her husband work in the airline industry. They are in their 40s, and they have a high tax bracket and are concerned about their after-tax rate of return. A meeting with their financial planner reveals that they are primarily focused on long-term capital gains and will need at least a 9% to 11% average rate of return to meet their retirement goals. They desire a diversified portfolio, and liquidity is not currently a major concern. Which of the following asset allocations seems to best fit their situation?
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