You are 27 years old and willing to invest $1,250 every other month for the next 15 years. You prefer a conservative-to-
Posted: Sun Jul 03, 2022 12:56 pm
You are 27 years old and willing to invest $1,250 every othermonth for the next 15 years. You prefer a conservative-to-moderateinvestment strategy and have a risk-averse to risk-neutraltolerance for risk. Your highest priority in your investmentstrategy is preparing you and any family that you might have in thefuture for your retirement. You also regularly set aside money intosavings and CDs to pay for vacations or similar large-ticket items.You've assembled a table of information and company descriptionsfor some new stocks and bonds that you are thinking about adding toyour investment portfolio.
Currently, your portfolio consists of 20 blue-chip stocks, andyou're thinking about increasing your diversification by addingsome different types of stocks.
The following are descriptions of potential firms to be added toyour portfolio:
a.Blue Llama Petroleum Company is an oil company whose salesprices, profits, and share price are low when the economy doeswell. Its beta is -0.95.
b. Green Fish Semiconductor Company is a large -diversifiedprovider of internet, network, and wireless services. It will bethe first firm to commercialize an underwater wifi system.
c. Jenny Company, a large -diversified provider ofhousehold consumables.
d. Pheasant Pharmaceuticals is growing at a reasonable pace butpays a cash dividend that is greater than that paid by otherpharmaceutical companies. The company's beta is 0.80.
Currently, your portfolio consists of 20 blue-chip stocks, andyou're thinking about increasing your diversification by addingsome different types of stocks.
The following are descriptions of potential firms to be added toyour portfolio:
a.Blue Llama Petroleum Company is an oil company whose salesprices, profits, and share price are low when the economy doeswell. Its beta is -0.95.
b. Green Fish Semiconductor Company is a large -diversifiedprovider of internet, network, and wireless services. It will bethe first firm to commercialize an underwater wifi system.
c. Jenny Company, a large -diversified provider ofhousehold consumables.
d. Pheasant Pharmaceuticals is growing at a reasonable pace butpays a cash dividend that is greater than that paid by otherpharmaceutical companies. The company's beta is 0.80.