Carl Reimer Has Just Received an Inheritance of $25,000 from His

question 59

Multiple Choice

Carl Reimer has just received an inheritance of $25,000 from his mother and is trying to decide how to invest it.Carl is young and earns a good salary.Carl wants to invest in a small cap mutual fund.While he won't receive much in the way of cash dividends,the companies are reinvesting significant amounts so the sales revenue and earnings in the future will be much larger.What aspect of investing is Carl most concerned about?

• A)Market risk
• B)Rate of return
• C)Diversification
• D)Liquidity
• E)Investment growth

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Definitions:

Congenital Analgesia

A rare condition wherein an individual is born with an inability to feel physical pain.

Pain

A complex sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Subliminal Stimuli

Stimuli that are below the threshold of conscious awareness, yet can influence thoughts, feelings, or actions.

Threshold

The level of strength a stimulus must reach to be detected or to produce a response.