Use the Information Given Below to Answer the Following Question(s)

question 39

Multiple Choice

Use the information given below to answer the following question(s) . Below is a payoff table that lists three mortgage options: $$\begin{array} { | l | l | l | l | } \hline & { \text { Outcome } } \\\hline \text { Decision } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { 2-year ARM } & \$ 66,645 & \$ 43,650 & \$ 38,560 \\\hline \text { 5-year ARM } & \$ 62,857 & \$ 47,698 & \$ 42,726 \\\hline \text { 25-year fixed } & \$ 52,276 & \$ 52,276 & \$ 52,276 \\\hline\end{array}$$
-What is the maximum opportunity loss incurred for the 25-year fixed decision?

• A) $ 8,626
• B) $ 13,716
• C) $ 14,369
• D) $ 10,581

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Definitions:

Gender Typing

The process through which children learn about societal expectations, attitudes, and behaviors considered appropriate for their sex.

Klinefelter Syndrome

A genetic condition that occurs in males when they have an extra X chromosome, typically characterized by physical, developmental, and reproductive differences.

Intersex Condition

A term used to describe a variety of conditions where a person is born with reproductive or sexual anatomy that doesn’t fit typical definitions of male or female.

Gonadal Dysgenesis

A condition characterized by underdeveloped or maldeveloped gonads, often leading to reproductive and hormonal issues.