QUESTION 75

1. A client has moderate overall risk tolerance and a return objective of 8.9%. Which of the following mutual funds is most likely by itself able to meet the client's objectives?

a. Global Index Fund with expected return of 8.8% and standard deviation of 22%.

b. U.S. Broad Index Fund with expected return of 9.1% and standard deviation of 15%.

c. North American Value Fund with expected return of 9.0% and standard deviation of 23%.

d. U.S. Tech Index Fund with expected return of 11.4% and standard deviation of 19%.

QUESTION 62

1. Bobbi expects to incur the following cash outflows during the coming year:

Travel = $2,000, Purchase vintage pin ball machine = $3,000, Gift for graduating niece = $1,000, and Pay off automobile loan = $4,000. The liquidity constraint for Bobbi is closest to:

a. $4,000.

b. $8,000.

c. $10,000.

d. $12,000.