Empty Nesters

question 234

Multiple Choice

Empty nesters

• A)are usually in the 30 to 44 age group.
• B)are not an attractive market for any items.
• C)spend a larger percentage of their income on child care.
• D)are people whose children are grown.
• E)disrupt the family life-cycle pattern.

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Definitions:

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification in an investment portfolio.

Residual Standard Deviation

A measure of the amount by which an entity's observed values differ from the predicted values, indicating the precision of estimates in regression models.

Index Model

A financial model that describes the return of a security or portfolio as a function of the return of the market index, plus a residual effect unique to the security.

CAPM

CAPM, or the Capital Asset Pricing Model, is a formula that describes the relationship between the expected return of an investment and market risk.