1. Do you agree with the financial consultant that the Steeles portfolio is not adequately diversified? Explain...

Question:

1. Do you agree with the financial consultant that the Steeles’ is not adequately diversified? Explain your answer.
2. How likely is it for the Steeles to earn annual returns of 30 to 50 percent for the next several years? How likely are they to earn those returns consistently in the future? Discuss your answers.
3. Arnold and Sharon have been watching the financial news networks, such as CNBC. The commentators and guests generate a considerable amount of energy, which can be conducive to frequent trading. Explain if you feel the Steeles should be active traders, holding securities perhaps no longer than several months, or even several weeks.
4. Explain if you feel that dollar cost averaging and reinvestment plans might be better alternatives to the frequent trading strategy discussed in Question 3.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...