BUSN 380 Course Great Wisdom / tutorialrank.com BUSN 380 Course Great Wisdom / tutorialrank.com | Page 58

Joan Cummings, who is a single mother with two small children
Darren Carter, who works for American Airlines and is worried that
he is going to be laid off soon
Barry Parks, who is an investment banker and earns over $200,000
per year
Michael Clark, who is 74 years old and been retired for 6 years
Fred Funderbunk, who delivers pizzas and makes about $15,000 per
year

Question 5. 5. (TCO 5) Mary Ann recently received a $20,000 gift
from her uncle and is considering investing in stocks, because she
knows that historically they have earned an approximately 10–12%
rate of return over the last few years. Referring to aspects of
investing, Mary Ann is most concerned about which of the following?
Risk
Return
Diversification
Liquidity
Income

Question 6. 6. (TCO 5) A $1,000 corporate bond pays 6.5% a year.
What is the annual interest you will receive?
$0.65