Alex Moore Is 43 Years Old and Has Accumulated $78,000

question 13

Multiple Choice

Alex Moore is 43 years old and has accumulated $78,000 in his self-directed defined contribution pension plan. Each year he contributes $1,500 to the plan, and his employer contributes an equal amount. Alex thinks he will retire at age 60 and figures he will live to age 83. The plan allows for two types of investments. One offers a 4% risk-free real rate of return. The other offers an expected return of 10% and has a standard deviation of 34%. Alex now has 40% of his money in the risk-free investment and 60% in the risky investment. He plans to continue saving at the same rate and keep the same proportions invested in each of the investments. His salary will grow at the same rate as inflation. Of the total amount of new funds that will be invested by Alex and by his employer on his behalf, how much will he put into the safe account each year; how much into the risky account?

• A) $1,500; $1,500
• B) $1,200; $1,800
• C) $2,000; $1,000
• D) $2,500; $500
• E) $1,400; $1,600

Explain the biological bases of personality traits, including introversion/extraversion, and the heritability of personality traits.

Evaluate the strengths and weaknesses of the trait approach to personality.

Evaluate the strengths and weaknesses of the personological approach to personality.

Understand and describe the big five factors of personality and their interrelations.

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Definitions:

Services on Account

A method where businesses provide services to a customer and allow them to pay at a later time, recording the transaction as account receivable.

Operating Expense

Refers to the costs associated with the day-to-day operations of a business, excluding costs related to production.

Receivables

Amounts due to be paid to a company by its customers for goods or services delivered on credit terms.

Bad Debt Expense

The expense recognized when a business determines that an amount owed by a debtor is unlikely to be collected.