Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. Suppose you believe the security market is efficient in the weak form but not efficient in the semi-strong form. Based on your belief, you would consider all of the following strategies EXCEPT ____. a. Investing in an actively managed mutual fund specialized in following price trends of commodities (e.g., gold, copper, crude oil, wheat, etc.). b. Investing in an actively managed mutual fund specialized in picking small-size stocks. c. Investing in an actively managed mutual fund specialized in picking technologystocks. d. Investing in an actively managed mutual fund specialized in picking speculative-grade bonds (or junk bonds).
Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues.
Suppose you believe the security market is efficient in the weak form but not efficient in the semi-strong form. Based on your belief, you would consider all of the following strategies EXCEPT ____.
a. Investing in an actively managed mutual fund specialized in following price trends of commodities (e.g., gold, copper, crude oil, wheat, etc.).
b. Investing in an actively managed mutual fund specialized in picking small-size stocks.
c. Investing in an actively managed mutual fund specialized in picking technologystocks.
d. Investing in an actively managed mutual fund specialized in picking speculative-grade bonds (or junk bonds).
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