Bob and Mary Martin Are Both 32 Years Old

question 14

Essay

Bob and Mary Martin are both 32 years old.Although they graduated from college almost 10 years ago,they have never developed a diversified investment program.What extra money they had was invested in high-tech stocks that did quite well until the last five years.Then,with the economic downturn,they encountered major losses.How could asset allocation have reduced the dollar amounts of the Martins' losses?

---

Definitions:

Embryo

An early stage of development in multicellular organisms, following fertilization and before becoming a fetus.

Multicellular

Organisms that consist of more than one cell, in contrast to unicellular organisms.

Hollow Ball

A term often used to describe the structure known as a blastula, an early stage of embryonic development in animals that is a spherical layer of cells enclosing a fluid-filled cavity.

Blastula

An early stage of embryonic development in animals, characterized by a sphere of cells surrounding a fluid-filled cavity.