Adara Is in Your Sixth-Grade Class

question 62

Essay

Adara is in your sixth-grade class. She is friendly and generous with the other children. She rarely gets into arguments, and when she does, she is able to work things out and maintain her friendships. What sort of attachment bond do you think Adara had, and probably continues to have, with her primary caregiver(s)? Justify your answer.

---

Definitions:

Cost of Equity

The rate of return that a company is required to pay out to its equity investors, reflecting the compensation for the risk they undertake.

SML Approach

Security Market Line (SML) approach is a graphical representation in the Capital Asset Pricing Model (CAPM) that shows the expected return of an asset or portfolio at various levels of systemic risk.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionally weighted.

Perpetuity

An annuity in which the cash flows continue forever.