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

question 1

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:

Job J

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Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders, based on a selected activity base like machine-hours or labor-hours.

Machine-Hours

A measure of production time, representing the number of hours machines are operating.

Manufacturing Departments

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