At Age Twenty, Sarah Matuzek Is Working as a Checkout

question 89

Essay

At age twenty, Sarah Matuzek is working as a checkout clerk in a grocery store, having left school after high school. She didn't do particularly well in school and had a hard time learning how to run the cash register, but she is a cheerful person, outgoing and friendly, and a reliable worker. She doesn't have a steady boyfriend, but she dates quite a lot and is looking forward to getting married and settling down-although she guesses that she will probably have to work after she is married. Given everything you know about adult development, what predictions would you make about Sarah's adult life? Back up your predictions with research evidence or theory wherever you can.

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Definitions:

Portfolio Risk

The risk associated with holding a portfolio of investments, reflecting the potential for loss due to market volatility.

Diversified Away

A strategy to reduce risk by allocating investments among various financial instruments, industries, or other categories to avoid overexposure to any single asset or risk.

Market Risk Premium

The additional yield investors anticipate for maintaining a portfolio of risky securities over safe assets.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield of government bonds.