Sean's Estate Planning Should

question 95

Multiple Choice

Sean's estate planning should

• A) Be built by acquiring assets using debt.
• B) Be distributed first to his cousin, then whatever is left should go to his wife.
• C) Ignore his beneficiaries.
• D) Consist primarily of a will.
• E) Take the needs of his wife and children into account.

Evaluate risk management strategies including insurance, diversification, and obtaining information.

Appreciate the value of information in uncertain decision-making scenarios.

Understand the economic principles behind supply and demand for risky assets.

Develop insights into behavioral economics aspects, such as the impact of certain habits on utility and decision-making in uncertainty.

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Definitions:

Evolutionary Psychology

Application of Darwinian principles of natural selection and survival of the fittest to individual behavior.

Cognitive Approach

A psychological perspective that focuses on how people think, understand, and know about the world, emphasizing mental functions such as learning, memory, perception, and problem-solving.

Macrosystem

In ecological systems theory, the broader cultural context that shapes an individual's development, including socioeconomic status, ethnicity, and heritage.

Ecological Approach

A perspective or methodology that considers all aspects of the environment, including physical, biological, and social factors, when examining problems or behaviors.