The National Pension Fund pays no taxes on its capital gains or on its dividend and interest income. Would it be illogical for it to have low-dividend, high growth stocks in its portfolio? Would it be illogical to have government bonds (which are safe but offer a low interest) in its portfolio?

The National Pension Fund pays no taxes on its capital gains or on its dividend and interest income. Would it be illogical for it to have low-dividend, high growth stocks in its portfolio? Would it be illogical to have government bonds (which are safe but offer a low interest) in its portfolio?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 32CTQ: Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies...

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Question

The National Pension Fund pays no taxes
on its capital gains or on its dividend and
interest income. Would it be illogical for it
to have low-dividend, high growth stocks in
its portfolio? Would it be illogical to have
government bonds (which are safe but
offer a low interest) in its portfolio?

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