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NEW QUESTION: 1
Liz is a new client of yours. She is 36 years old, single, and has been working and earning a nice salary since her graduation from high school. She has been contributing the maximum allowed to a TSA plan through her employer, and you have no reason to doubt that she will meet her stated goal to retire when she is 58. She also has a good health care plan through her employer and is in excellent health. She has been depositing her non-retirement savings in a money market fund and is not pleased at the pathetic return she has been earning on her current balance of $140,000. Liz has been reading some articles on the web and understands she could allocate her funds to receive a higher return. She's willing to take on a moderate level of risk, but needs your help. She informs you that she does plan to use $40,000 of her current savings as a down payment for a condo and that her investment goals are to have money available for travel and for unexpected expenses and periodic purchases such as new cars and new furniture as the needs arise. She pays taxes at the highest marginal tax rate for individual tax payers.
Based on these facts, which of the following asset allocations would best meet her needs?
I. Money market fund: 30%; investment-grade corporate bonds: 20%; blue-chip stocks: 20%; high-yield bonds: 10%; small cap stocks: 10%; foreign stocks: 10%
II. Money market fund: 10%; investment-grade municipal bonds: 5%; blue-chip stocks: 25%; high-yield bonds: 25%; small cap stocks: 10%; foreign stocks: 25%
III. Money market fund: 10%; investment-grade municipal bonds: 25%; growth stocks: 40%; small cap stocks: 15%; foreign stocks: 10%
C. Either II or III would be suitable recommendations.
Explanation: The portfolio described in Selection III would be the best choice for Liz. She has little need for liquidity, so the allocation to a money market fund is only 10%. Another 40% of the allocation is in investment-grade municipal bonds and blue-chip stocks, with only 25% allocated to the riskier asset classes of foreign stocks and small caps. This meets her stated willingness to take on only a moderate level of risk. The large percentage that is allocated to municipal bonds is intended to provide her with federal tax-free interest income since she is in such a high marginal tax bracket -income that she can use for traveling and for those unexpected and periodic expenses, perhaps. The 45% allocation to growth stocks and small caps will also serve as a tax shield since these categories of stocks pay little, if any, dividends that would be taxed. Liz will only have to pay tax on capital gains when she chooses to sell these assets. The portfolio described in Selection I has far too much invested in a lower-yielding money market fund for someone who doesn't need much liquidity. Portfolio II has 60% invested in high risk securities-junk bonds, small caps, and foreign stocks-with a full 50% invested in junk bonds and foreign stocks. This would be an inappropriate allocation for an investor who is willing to accept only a moderate level of risk.
NEW QUESTION: 2
Pete's corporation has outsourced help desk services to a large provider. Management has published a procedure that requires all users, when receiving support, to call a special number.
Users then need to enter the code provided to them by the help desk technician prior to allowing the technician to work on their PC. Which of the following does this procedure prevent?
D. Transitive Access
NEW QUESTION: 3
B. Site-to-site vpn
NEW QUESTION: 4
Which of the following are the two built-in user accounts created automatically on a computer running Windows Server 2012 R2?
C. Correct: By default, the two built-in user accounts created on a computer running Windows Server 2012 are the Administrator account and the Guest account.
D. Correct: By default, the two built-in user accounts created on a computer running Windows Server 2012 are the Administrator account and the Guest account.
A: There is no Network account in Windows Server 2012 R2.
B: There is no Interactive account in Windows Server 2012 R2.