Business, 25.08.2020 23:01 spiritcampbell56

Customer Name: Charlie Customer Age: 69
Marital Status: Single - Widowed
Dependents: None
Occupation: Retired
Household Income: $31,000 (Social Security and Pension)
Net Worth: $130,000 (excluding residence)
Own Home: Yes $220,000 Value, No Mortgage
Investment Objective: Current Income
Risk Tolerance: Low
Investment Time Horizon: 20 years
Investment Experience: 0 years
Current Portfolio Composition: Cash in Bank: $130,000

After reviewing this customer's profile sheet, which recommendation would be most appropriate?

a. The customer should take at least $100,000 of cash from the bank and invest the proceeds in 20-year TIPS to meet the customer's desire for current income and his low risk tolerance requirements
b. The customer should take at least $100,000 of cash from the bank and invest the proceeds in 20-year STRIPS to meet the customer's desire for current income and his low risk tolerance requirements
c. The customer should mortgage his house for $100,000 at current market interest rates and use the proceeds to buy 20 year income bonds to provide current income
d. The customer should take at least $100,000 of cash from the bank and invest the proceeds in 20-year Treasury Bonds to meet the customer's desire for current income and his low risk tolerance requirements

Answers: 3

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Customer Name: Charlie Customer Age: 69
Marital Status: Single - Widowed
Dependents: No...

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