Mary Beth Is Risk Averse and Has $1,000 with Which

question 60

Multiple Choice

Mary Beth is risk averse and has $1,000 with which to make a financial investment.She has three options.Option A is a risk-free government bond that pays 5 percent interest each year for two years.Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years.Option C is a high-risk stock that is expected to be worth about $1,200 in four years.Mary Beth should choose

• A)option A.
• B)option B.
• C)option C.
• D)either A or B because they are the same to her.

Recognize the influence of parenting styles on child development.

Understand the concept of egocentrism and its implications in adolescent self-perception.

Describe Piaget's stages of cognitive development and the key accomplishments in each stage.

Comprehend Kohlberg's theory of moral reasoning and its stages.

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Definitions:

Factor

An element or component that contributes to a particular result or situation.

Bad Debts

Accounts receivable that are considered to be uncollectible, representing losses to the company.

Promissory Note

A monetary tool that includes a formal pledge from one entity to another to pay a certain amount of money, either when asked or on a predetermined date in the future.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.