In Investment Matters, Generally Young Workers Compared to Older Workers

question 68

Multiple Choice

In investment matters, generally young workers compared to older workers will:

• A) minimize expected return and focus more on variability.
• B) be less risk-averse.
• C) have equal concern for expected return and variability.
• D) be more risk-averse.

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Definitions:

Interest Rates

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Premium

The amount paid for an insurance policy or an extra charge for an enhanced or optional service over and above the basic.

Market Value

The contemporary selling or buying price of a service or asset in the market.

Maturity Risk

The risk associated with the uncertainty of returns due to changes in interest rates as an investment approaches its maturity date.