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NEW QUESTION: 1
Wealth Management's top economist, Frederick Milton, is an economic cycle forecaster- Milton's economic forecasts indicate an economic upswing that will impact all goods and services sectors. Milton presents his economic findings to the rest of Wealth Management's professionals at their monthly meeting. All are excited about Milton's forecast of an improving economic condition that should translate into a steadily rising stock market.
Nathaniel Norton and Timothy Tucker have confidence in Milton's capabilities and decide to meet with their clients. Their first meeting is with Elizabeth Mascarella to whom Norton recommends a dynamic asset allocation strategy to take advantage of Milton's forecast. However, Mascarella is concerned because the somewhat persistent back-and-forth of economic activity has translated into an oscillating stock market.
Mascarella questions Norton's recommendation and asks Tucker which strategy should be followed if the market continues as it has, instead of making such "wonderful" strides.
It is one year later and Frederick Milton's economic forecast has been correct, and the market has trended upward as expected. Mascarella's strategic allocation to equity, which was $600,000 of a total portfolio of
$1,000,000, has increased 20%. Her overall portfolio, which contains equity, debt, and some cash, is now valued at $1,150,000. Tucker meets with Mascarella and indicates it may be time to rebalance her portfolio.
Determine the preferred dynamic rebalancing strategy if the market is expected to be highly volatile, but more or less flat.
A. Buy and hold.
B. Constant proportion portfolio insurance.
C. Constant mix.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In a market expected to oscillate, constant mix strategies (fixed percentage allocation to stocks) outperform the others, since they involve buying/selling stocks when prices fall/ rise. (Study Session 16, LOS 46.h)

NEW QUESTION: 2
Drag and Drop Question
Drag and drop the fiber cable connection types to the appropriate image.

Answer:
Explanation:

NEW QUESTION: 3
A financial analyst with Smith, Kleen, and Beetchnutty is examining shares of Clever Industries, for possible investment. Clever Industries is involved in textile manufacturing, and the firm has been growing at a steady rate for much of the last nine decades. The analyst is trying to determine the appropriate current price range for Clever shares, and has ascertained the following information:
Expected annual dividend = $0.35
Expected sustainable annual growth rate = 15%
Investors required rate of return = 18.6%
Given this information, what is the appropriate current price for Clever Industries common stock?
A. The current price of Clever Industries cannot be determined from the given information.
B. $10.28
C. $1.88
D. $9.72
E. $2.33
Answer: D
Explanation:
Explanation/Reference:
Explanation:
To calculate the appropriate stock price for Clever using the given information, the appropriate equation is as follows: {expected annual dividend/[investor's required rate of return - expected growth rate]}.
Incorporating the given information into this equation yields a stock price of $9.722. Remember that this model to stock valuations is most appropriate for firms who are in the constant growth stage. Another important note to remember is that this model will yield realistic results only in those instances in which the investor's required rate of return exceeds the expected growth rate.

NEW QUESTION: 4
リポジトリオブジェクトはクライアント固有です。
A. 真
B. 偽
Answer: B

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