What is the point at issue between Amatriya and Tatsuya? A) Which inv

QUESTION

What is the point at issue between Amatriya and Tatsuya?

A) Which investment strategy should Amatriya and Tatsuya use to manage their portfolio?
B) How much money do they need in their portfolio to support the post-retirement lifestyle they plan to have?
C) Can growth stocks increase in value more rapidly than blue-chip stocks?
D) Should they ask their broker to make the change in investment strategy now or in a few years?
E) Is the overall economy going to be strong or weak over the next ten years?

ANSWER

Answer: A
Explanation: A) Couples planning a retirement fund need to agree on whether it should be managed aggressively, conservatively, or in a balanced way. So Choice A is correct: The two need to choose a common investment approach. While Choice B is also crucial for them to determine, this is not at issue between the two. And while their answer to Choice E might help determine a strategy, this, likewise, is not the focus of their decision. Once they opt for a strategy, they then should resolve whether to make the change now or later (Choice D), but, again, this is not the immediate matter. Choice C is not relevant to their dilemma—growth stocks can also decrease in value more quickly.