QUESTION IMAGE
Question
- social security benefits are meant to ______ your income. replace 40% of tax 100% of decrease fully replace 7. why might someone choose to diversify their investments? to keep them from getting bored with one form of investment. to balance high - risk investments with more steady and predictable ones. there isnt a good enough reason to diversify your investments. to keep the risk as high as possible so the reward is equally high. 8. when riding the highs and lows of the stock market, remember... you cant go wrong when investing money into stocks. it will level out, so stick with it! its unpredictable and risky. you should pull your money out and steer clear.
Brief Explanations
- Question 6: Social Security benefits are designed to replace a portion of income, typically around 40% for average - wage earners. Taxing 100% of income (which would mean taking all income) is not the purpose. Decreasing income is also not the goal. And fully replacing income (as Social Security is just one part of retirement income planning, along with personal savings, pensions etc.) is incorrect.
- Question 7: Diversification in investments is a risk - management strategy. The idea is to balance high - risk (e.g., emerging market stocks) with more stable investments (e.g., government bonds). It's not about boredom. Saying there is no good reason is wrong as it is a fundamental investment principle. Keeping risk as high as possible goes against the concept of diversification.
- Question 8: The stock market is unpredictable and risky. Saying "you can't go wrong" is false as there are many factors (economic downturns, company - specific issues) that can cause losses. Saying "it will level out, so stick with it" is overly simplistic as some stocks or market segments may not recover. The correct view is that it is unpredictable and risky, and one should be cautious (but not necessarily pull all money out in all cases, but the option about it being unpredictable and risky is the most accurate among the given choices).
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- Replace 40% of
- To balance high - risk investments with more steady and predictable ones.
- It's unpredictable and risky. You should pull your money out and steer clear.