Probably the Greatest Long-Term Threat to the Viability of the Social

question 12

Multiple Choice

Probably the greatest long-term threat to the viability of the Social Security system is the

• A)pending retirement of baby boomers.
• B)dramatic increase in health care costs.
• C)declining political clout of senior citizens.
• D)number of current workers choosing not to participate.
• E)declining value of the Treasury bonds in which the Social Security trust fund is invested.

---

Definitions:

Stock Portfolio

A collection of stocks held by an individual or institution, managed and adjusted in pursuit of certain financial goals.

Required Return

The minimum expected yield that investors demand for investing in a financial asset, taking into account the risk associated with the investment.

Beta

A measure of a stock's volatility in relation to the overall market; a beta higher than 1 indicates the stock is more volatile than the market.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to shareholders.