Julia’s investments survived the Great Recession–related bear stock market declines because she was well diversified and was investing more heavily in bonds in the years preceding the decline. When it seemed like the coming recession was starting to look like a reality, Julia cashed out of some equities and moved most of that money into corporate bonds and Treasuries. As a result, over the past four years, the bond portion of her portfolio rose over 20 percent due to low inflation and declining interest rates, which pushed up the value of her bonds. Now she thinks inflation and bond prices will rise so she is selling all her bonds and investing the proceeds into equities. But the stock market prices seem too high already, so she is hesitating. Offer your opinions about her thinking.
Answer to relevant Questions(a) If Jessica buys corporate or municipal bonds, what rating should her selections have? Why?(b) Jessica has a choice between two $1000 bonds: a corporate bond with a coupon rate of 5.1 percent and a municipal bond with a ...1. Give three examples of fees or charges associated with load funds.2. Which is better for most investors, load or no-load funds? Why?3. Summarize the effects of loads and fees on investment returns.It has been over 25 years since Julia graduated with a major in aeronautical engineering, and she has been quite successful in her career as well as in managing her personal finances. She has moved up the career ladder, ...1. Distinguish between a call and a put for the options investor. 2. Summarize one way a person with a conservative investment philosophy can profit in options. 3. Explain how a speculative options investor can make a lot of ...1. List the key financial planning actions that individuals must take during their working lives to prepare for retirement.2. Summarize how workers become qualified for retirement Social Security benefits.3. Distinguish ...
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