Use the Information for the Question(s)below

question 67

Essay

Use the information for the question(s)below.
Consider an economy with two types of firms, S and U. The S firms always move together, but U firms move independently of each other. For both types of firms there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.
-What care, if any, should be taken when selecting shares for an investment portfolio?
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Definitions:

Non-normative Transitions

Life events that occur unpredictably or atypical from the standard developmental life stages, affecting the individual's life course.

Family Life Cycles

The stages through which a family progresses over time, including changes in family structure and roles.

Resiliencies

The ability of individuals, communities, or systems to adapt to and recover from adversities or challenges.

Foster Care

A system in which a minor has been placed into a ward, group home, or private home of a state-certified caregiver, referred to as a "foster parent".