You have retired after a long and successful career as a business executive and now spend a good portion of your time managing your retirement portfolio. You are considering three basic investment alternatives. You can invest in
(1) corporate bonds paying 7 percent interest,
(2) conservative stocks that pay substantial dividends (typically 5 percent of the stock price every year), and
(3) growth-oriented technology stocks that pay no dividends.
Required:
Analyze each of these alternatives and select one. Justify your selection.