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

question 109

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 and 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

---

Definitions:

Net Primary Productivity

The rate at which plants in an ecosystem produce net useful energy (biomass) after accounting for the energy consumed through the process of respiration.

Ecosystem

A biological community of interacting organisms and their physical environment, considered a system through which nutrients are cycled and energy flows.

Average

A statistical measure representing the central or typical value in a set of data, commonly calculated by dividing the sum of all values by the number of values.

Humus

Organic material in the soil formed by the decomposition of leaves and other plant material by soil microorganisms, crucial for soil fertility and structure.