Ernest Is Deeply Sad

question 31

Multiple Choice

Ernest is deeply sad. He does not eat much, doesn't seem to want to take care of himself, and believes his life's work is useless. You think this is strange because several weeks ago Ernest was very excited about his life. He talked and talked about his new book and even seemed to stay up an entire week writing. Ernest probably has

• A) major depression.
• B) schizophrenia.
• C) obsessive-compulsive disorder.
• D) bipolar disorder.

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Definitions:

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for any fees or additional costs associated with the transaction, expressed as a percentage.

Treasury Bill

Short-term, government-issued debt securities that mature in one year or less.

Par

The face value of a bond or other security, which is the amount the issuer promises to repay at maturity.

Dollar-Weighted Return

A measure of an investment's return, taking into account the timing and size of cash flows into and out of the investment.