Yolanda Is a 12-Year-Old Who Is Severely Depressed and Is

question 90

Essay

Yolanda is a 12-year-old who is severely depressed and is being treated with only a selective serotonin reuptake inhibitor (SSRI).
a. Describe some potential drawbacks to Yolanda's current treatment plan.
b. Provide some recommendations that would improve her prognosis.

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Definitions:

Market Risk Premium

The additional return expected by investors for accepting the higher risk associated with the equity market over a risk-free asset.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield of a short-term government bond.

Beta

A measure of a stock's volatility in relation to the overall market, used in the Capital Asset Pricing Model to determine the expected return of an investment.

Risk Aversion

The reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, payoff.