Question

Amy and Maxwell Walker have decided to invest their investment dollars: 40 percent in stocks, 30 percent in bonds, and 30 percent in cash equivalents. Over the past year, the market value of their bonds increased while the market value of their stocks declined. Using the asset allocation model, they should now

Answer 1

C.use some of their cash equivalents to buy more stocks.

Step-by-step explanation:

Data provided in the question

Stock = 40%

Bond = 30%

cash equivalent = 30%

The Market value of the bond rise

The market value of the stock falls

Based on the above information,

According to the asset allocation model, mostly everyone uses some of their cash equivalents i.e bank account, marketable securities to purchased more stock

Hence, the option c is correct