One Proposed Solution to the Funding Problems Faced by Social

question 118

Multiple Choice

One proposed solution to the funding problems faced by Social Security and Medicare is to increase the retirement age from 67 to 70.Although this would mean billions of dollars in savings for these federal programs,an unintended consequence may be

• A) a decrease in life expectancy.
• B) an increase in the unemployment rate.
• C) an increased number of elderly people in the workforce.
• D) less incentive for people to work longer.
• E) an increased incentive for people to work longer.

Understand the role of variance and standard deviation in measuring the dispersion of returns for investments.

Recognize the factors influencing the expected return of a portfolio, including weights based on probability, investment amount, and systematic risk.

Realize the potential to manage and manipulate portfolio risk through investment in diverse securities including international exposure.

Acknowledge the limitations of diversification, particularly in eliminating all forms of risk.

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Definitions:

Germanium

A chemical element with the symbol Ge and atomic number 32, used as a semiconductor in electronics and as an alloying agent.

Argon

A noble gas element that is colorless, odorless, tasteless, and non-toxic, used in lighting and welding.

Chromium

A chemical element with symbol Cr and atomic number 24, known for its high corrosion resistance and hardness.

Fluorine

A highly reactive, pale yellow gas at room temperature, being the most electronegative and reactive of all the elements.