Next,suppose Amanda's Broker Thinks the Stock Market May Be Too

question 37

Essay

Next,suppose Amanda's broker thinks the stock market may be too risky and has advised her to diversity by investing some of her money in money market funds and bonds.He estimates that this will lower her expected annual return to 10% per year,but will also lower the standard deviation to 10%.What can she expect to have in her account after thirty years under this investing strategy?

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Definitions:

Arboreal

Pertaining to trees; living in or related to trees.

Pygmy Chimps

Commonly known as bonobos, a species of great ape native to the Congo Basin, distinguished by their comparatively small size, matriarchal social structures, and complex social behaviors.

Opposable

Having the ability to bring the thumb or big toe in contact with the tips of the other digits on the same hand or foot to grasp objects.

Jane Goodall

Jane Goodall is a renowned British primatologist and anthropologist, best known for her extensive study of wild chimpanzees in Gombe Stream National Park, Tanzania, contributing significantly to our understanding of primate behavior.