Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
drdoombot drdoombot
wrote...
Go to Answer
Posts: 142
Rep: 0 0
2 years ago
Mathew's 401-K plan offers a choice between and S&P 500 Index Fund, a large-cap stock fund, a blue chip stock fund that seeks high dividend income and modest growth, a fund that invests only in investment grade corporate bonds and a fund that that invests only in government bonds.  Mathew allocates 20% of his money to each fund.  Which of the following statements offers the best critique of Mathew's "1/N" allocation?

▸ Mathew may not be as well diversified as he thinks because the three stock funds probably own many of the same stocks.

▸ He should have allocated on 1/3 to stocks and 1/3 to each of the remaining funds.

▸ His plan does not provide sufficient liquidity.

▸ There is nothing wrong with Mathew's plan.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
Authors:
Read 56 times
1 Reply
Replies
Answer verified by a subject expert
KimbletonKimbleton
wrote...
#1
Posts: 167
Rep: 1 0
2 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

drdoombot Author
wrote...

2 years ago
Thanks
KaylenePig
wrote...

Yesterday
Smart ... Thanks!
Lawson1981
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1530 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 321
  
 413
  
 212