Question: 1 Do you agree with the financial consultant that the

1. Do you agree with the financial consultant that the Steeles’ portfolio 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 dividend reinvestment plans might be better alternatives to the frequent trading strategy discussed in Question 3.

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  • CreatedMarch 19, 2015
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