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The "Dogs of the Dow" Refer to the Stocks Listed

Question 2

Multiple Choice

The "Dogs of the Dow" refer to the stocks listed on the Dow with the highest dividend yield. The table shows the top ten stocks of the "Dogs of the Dow" list in February, 2005. You decide to make a small portfolio consisting of a collection of seven of the top ten Dogs of the Dow. How many portfolios are possible  Symbol  Company  Price  Yield  SBC  SBC 23.625.46% Communications  General Motors 36.645.46% MRK  Merck 28.025.42% MO  Altria 63.204.62% VZ  Verizon 35.684.32% JPM  JP Morgan Chase 37.003.68% C  Citigroup 48.383.64% PFE  Pfizer 24.353.12% DD  DuPont 47.232.96% GE  General Electric 35.752.46%\begin{array} { | c | c | c | c | } \hline \text { Symbol } & \text { Company } & \text { Price } & \text { Yield } \\\hline \text { SBC } & \text { SBC } & 23.62 & 5.46 \% \\\hline \text { Communications } & \text { General Motors } & 36.64 & 5.46 \% \\\hline \text { MRK } & \text { Merck } & 28.02 & 5.42 \% \\\hline \text { MO } & \text { Altria } & 63.20 & 4.62 \% \\\hline \text { VZ } & \text { Verizon } & 35.68 & 4.32 \% \\\hline \text { JPM } & \text { JP Morgan Chase } & 37.00 & 3.68 \% \\\hline \text { C } & \text { Citigroup } & 48.38 & 3.64 \% \\\hline \text { PFE } & \text { Pfizer } & 24.35 & 3.12 \% \\\hline \text { DD } & \text { DuPont } & 47.23 & 2.96 \% \\\hline \text { GE } & \text { General Electric } & 35.75 & 2.46 \% \\\hline\end{array}


A) 5,040 portfolios
B) 21 portfolios
C) 24 portfolios
D) 120 portfolios
E) 56 portfolios

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