Part 4 S66
If the current risk-free rate is 5%, and the expected return on the market is 10%, what return can be expected from a security that has a beta of 1.5?
12.5% - RFR + [(MR-RF)x Beta] -- 5% + [10%-5%) x 1..5] --- 5% + [5%x1.5%] ----5% + 7.5% = 12.5%
a method for determining the internal rate of return to an investor based on cash flow in and out of the portfolio?
Dollar-weighted return
________ investors usually seek stocks with high-growth expectations, reflected by a - higher-than-normal P/E ratio, typically 20:1 or higher and - a low dividend yield, usually caused by a low dividend payout ratio
Growth
A limited group of coins, especially the "eagles" minted by the U.S. Treasury Department, are eligible for investment in an IRA.
No form of life insurance or collectibles are eligible
A frequent concern of parents initiating a savings plan for the college education of their child is the lack of control over the assets, particularly if the child decides to forego higher education. When you have a client who shares this concern with you, it would be most appropriate to suggest
a Section 529 plan.
Securities can be gifted to charity and deducted at their...
fair market value, as long as they have been held more than one year
A GRAT is an estate planning tool designed to pass assets to beneficiaries (usually children) in a way to minimize ... taxes
gift and/or estate taxes
The goal of modern portfolio theory (MPT) is to construct the most efficient portfolio. An efficient portfolio is one that offers
the least risk for a given amount of return