Which One of the Following Individuals Should Have a Higher

question 70

Multiple Choice

Which one of the following individuals should have a higher tolerance for risk?

• A)Joan Cummings, who is a single mother with two small children
• B)Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon
• C)Barry Parks, who is an investment banker and earns over $200,000 per year
• D)Michael Clark, who is 74 years old and has been retired for 6 years
• E)Fred Funderbunk, who is a pizza delivery person and makes about $15,000 per year

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members as a distribution of profits.

Shares Reacquired

Shares that were previously issued and have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Dividend Declared

The action by a company's board of directors to distribute a portion of the earnings to shareholders, specified as an amount per share.

Originally Issued

Pertains to securities or stocks that have been made available for sale to the public for the first time.