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A Middle- Aged Couple Earns More Than Sufficient Cash for Their

Question 2

Multiple Choice

A middle- aged couple earns more than sufficient cash for their current needs from their employment. They invest in shares to create a fund for their retirement. Which of the following best describes a suitable policy for the couple in efficient capital markets?


A) Invest in companies that pay low dividends and retain money to invest in projects
B) Invest in companies that have high levels of debt and pay high dividends
C) Invest in companies that pay high dividends and rarely retain money to invest in projects
D) Invest in companies that have low levels of debt and pay high dividends

Correct Answer:

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