Fred and Martha are in their seventies and retired. Which one of the following sets of portfolio statistics might best suit their situation if their primary investment goal is current income with limited risk?
A) beta of 0.83 and a dividend yield of 6.3%
B) beta of 0.86, and a dividend yield of 4.6%
C) beta of 1.6 and a dividend yield of 6.4%
D) beta of 1.1 and a dividend yield of 5.4%

Question

Quizplus · Accepted Answer

A portfolio with a beta of 0.83 indicates lower volatility compared to the market, and a dividend yield of 6.3% provides a good level of current income, aligning with Fred and Martha's goal of income with limited risk.

Fred and Martha Are in Their Seventies and Retired