Author Question: Lillian would rather keep her money in a savings account at the bank, even if it doesn't earn much ... (Read 38 times)

nmorano1 · **on:** Jul 14, 2018

Lillian would rather keep her money in a savings account at the bank, even if it doesn't earn much interest, because investing in the stock market makes her anxious. Which factor in selecting investments does this best illustrate?
A) Diversification
B) Asset allocation goals
C) Liquidity needs
D) Investment horizon
E) Risk tolerance

Question 2

You and three team members just won the sales competition at work and received 5000 each as a bonus. The team worked well together, and everyone put in equal effort. According to equity theory, what is your likely response?
A) You will not work as hard.
B) You will quit your job.
C) You will ask for a promotion or a raise.
D) You will increase your efforts next month to justify the reward.
E) You will leave things as they are.