Matt Jackson Is Single and 24

question 77

Multiple Choice

Matt Jackson is single and 24.He has just graduated from college and obtained a job making $26,400 a year.Which one of the following investments would you recommend for his long-term investment program?

• A)corporate bonds
• B)government bonds
• C)growth stocks
• D)commodities
• E)money-market fund

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Definitions:

Escalation

The process of increasing or intensifying a situation or conflict, often leading to a more serious state.

Overconfidence

A cognitive bias where someone's subjective confidence in their judgments is greater than their objective accuracy.

Short-Term Thinking

A focus on immediate results or benefits at the expense of longer-term goals or implications.

Satisficing

A decision-making strategy that seeks an adequate solution rather than the optimal one, based on the practicality of attaining satisfactory results within limitations.