Which of the following funds will you recommend to your client is his required rate of return to achieve his retirement goal is 5% and has moderate risk tolerance level? Select one: a

Finance Dec 27, 2020

Which of the following funds will you recommend to your client is his required rate of return to achieve his retirement goal is 5% and has moderate risk tolerance level?

Select one: a. A government bond with expected return of 4% b. Derivative ssecurities with expected return of 15% c. Balance fund with expected return of 8% d. Equity fund with expected return of 13%

Expert Solution

c. Balance fund with expected return of 8%

as A balanced fund is a mutual fund that contains a stock component, a bond component, and sometimes a money market component in a single portfolio. Generally, these funds stick to a relatively fixed mix of stocks and bonds.

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