Your Friend Is Contemplating a Divorce but Is Concerned About

question 67

Multiple Choice

Your friend is contemplating a divorce but is concerned about the negative effects of the divorce on the children. Your friend should be aware of the research showing that ____.

• A) the divorce itself is the most important factor in the later difficulties among children from homes where divorce occurred
• B) two parents who fight with each other create as much distress in children as the experience of divorcing parents
• C) the negative effects of divorce are greater for the parents than they are for the children
• D) the negative effects of divorce are largely a thing of the past

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Definitions:

Duration

A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates, often expressed in years.

Perpetuities

A type of annuity that receives an infinite series of identical cash flows with no end.

Deep Discount Bonds

Bonds that are issued at a significantly lower price than their par value, often with higher yields to compensate for the risk.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, indicative of the risk or uncertainty of the security's value over time.