BUSN 380 help Making Decisions/uophelp.com BUSN 380 help Making Decisions/uophelp.com | Page 69

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
$6.50
$65.00
$1,060.50
$1,065.00
Question 7. 7. (TCO 5) Investments can be affected by all of the
following risks except
inflation.
global risks.