Terry Hamilton Has Just Received $30,000 from an Uncle Who

question 8

Multiple Choice

Terry Hamilton has just received $30,000 from an uncle who died and is trying to decide how to invest it. She has done some research has decided that about 30% of the money should go into large cap stocks, 20% into medium cap stocks, 15% into small cap stocks, 10% into bonds, 10% into foreign stock, and 15% into cash. She thinks that even if one area does not do that well, the rest will so that her overall return will be pretty good. What aspect of investing is Terry most concerned about?

• A) Income
• B) Return
• C) Diversification
• D) Liquidity
• E) Investment growth

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Definitions:

Flow Measure

A term used in economics to describe a quantity measured over a specified period of time, such as income per month or spending per year.

Quantity Demanded

The total number of units of a product or service that purchasers are eager and capable of procuring at a designated price level.

Hard Drives

Storage devices used in computers and servers to store data persistently.

Laptop Computers

Portable personal computers designed for mobile use and small enough to sit on one's lap while in use.