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Genny Webb Is 27 Years Old and Has Accumulated $7,500

question 46

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Genny Webb is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan.Each year she contributes $2,000 to the plan, and her employer contributes an equal amount.Genny thinks she will retire at age 63 and figures she will live to age 90.The plan allows for two types of investments.One offers a 3% risk-free real rate of return.The other offers an expected return of 12% and has a standard deviation of 39%.Genny now has 20% of her money in the risk-free investment and 80% in the risky investment.She plans to continue saving at the same rate and keep the same proportions invested in each of the investments.Her salary will grow at the same rate as inflation. How much can Genny expect to have in her risky account at retirement?

Recognize the importance and roles of precautionary and speculative demands for money.
Understand the distinct roles and characteristics of managers and leaders.
Identify factors that contribute to becoming an informal or formal leader.
Recognize the concept of leader emergence in groups without designated leaders.

Definitions:

Anxiety-Arousing Thoughts

Internal cognitions or thoughts that trigger or increase feelings of anxiety, fear, or unease.

Reaction Formation

A defense mechanism where an individual behaves in a way that is opposite to their true feelings or desires.

Defense Mechanism

Psychological strategies deployed by individuals unconsciously to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Hostility

An intense form of anger or aggression often displayed through antagonistic behavior towards others.

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