Vienna is a Dealing Representative with Better Futures Inc., a mutual fund dealer Vienna meets with her new client, Elroy, to complete Elroy's Know Your Client (KYC) Form. After a detailed discussion, Vienna determines that Elroy's investment objective is "Safety." Which of the following criteria would indicate that Elroy has a "Safety" investment objective? O Elroy indicates that his investment priority is capital appreciation. O Elroy says that his investment priority is to preserve his principal. O Elroy says that he wants more than 60% in equity investments O Elroy indicates that he wants to invest in precious metals funds One of your clients, Sheldon, is 65 years old. He has $30,000 to invest. He has a low risk profile, and an investment objective of receiving regular income. He has a time horizon of 5 years. Based on Sheldon's risk profile and investment objective, which of the following investment recommendations is MOST appropriate for Sheldon? ABC common shares which had a 20% annual yield during the previous 5 years. 3% Government of Canada Bonds at par, which have a maturity that coincides with Sheldon's time horizon. O FEG Labour-Sponsored Fund which will give him a tax benefit. Debentures of XYZ Corporation will give Sheldon a regular income and an attractive yield.
Vienna is a Dealing Representative with Better Futures Inc., a mutual fund dealer Vienna meets with her new client, Elroy, to complete Elroy's Know Your Client (KYC) Form. After a detailed discussion, Vienna determines that Elroy's investment objective is "Safety." Which of the following criteria would indicate that Elroy has a "Safety" investment objective? O Elroy indicates that his investment priority is capital appreciation. O Elroy says that his investment priority is to preserve his principal. O Elroy says that he wants more than 60% in equity investments O Elroy indicates that he wants to invest in precious metals funds One of your clients, Sheldon, is 65 years old. He has $30,000 to invest. He has a low risk profile, and an investment objective of receiving regular income. He has a time horizon of 5 years. Based on Sheldon's risk profile and investment objective, which of the following investment recommendations is MOST appropriate for Sheldon? ABC common shares which had a 20% annual yield during the previous 5 years. 3% Government of Canada Bonds at par, which have a maturity that coincides with Sheldon's time horizon. O FEG Labour-Sponsored Fund which will give him a tax benefit. Debentures of XYZ Corporation will give Sheldon a regular income and an attractive yield.
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.10P
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Transcribed Image Text:Vienna is a Dealing Representative with Better Futures Inc., a mutual fund dealer Vienna meets with her new client, Elroy, to complete
Elroy's Know Your Client (KYC) Form. After a detailed discussion, Vienna determines that Elroy's investment objective is "Safety." Which
of the following criteria would indicate that Elroy has a "Safety" investment objective?
O Elroy indicates that his investment priority is capital appreciation.
O Elroy says that his investment priority is to preserve his principal.
O Elroy says that he wants more than 60% in equity investments
O Elroy indicates that he wants to invest in precious metals funds
Transcribed Image Text:One of your clients, Sheldon, is 65 years old. He has $30,000 to invest. He has a low risk profile, and an investment objective of
receiving regular income. He has a time horizon of 5 years.
Based on Sheldon's risk profile and investment objective, which of the following investment recommendations is MOST appropriate for
Sheldon?
ABC common shares which had a 20% annual yield during the previous 5 years.
3% Government of Canada Bonds at par, which have a maturity that coincides with Sheldon's time horizon.
O FEG Labour-Sponsored Fund which will give him a tax benefit.
Debentures of XYZ Corporation will give Sheldon a regular income and an attractive yield.
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