D'Jeanea inherited money from her grandparents in 2007 and invested it in the stock market.In 2008 the market dropped drastically.During the recession that followed,her portfolio lost thousands of dollars in value even though all of the companies she invested in remained solvent.D'Jeanea left her money in the market and kept it invested in the same companies as 2007.What is the most likely state of her portfolio today?
A) It has most likely gained value due to the uptick in the business cycle and economic growth experienced since 2011 and it is no doubt worth as much or more than it was worth in 2007.
B) It has continued to lose value.
C) It has grown then faltered and decreased in value due to the recovery and is most likely worth the same or less than it was worth in 2007.
D) Since an economic recovery generally lasts an average of 24 months,her portfolio gains in value and is currently on the down-turn as the economy enters another downward cycle.

Question

Quizplus · Accepted Answer

The uptick in the business cycle and economic growth since 2011 would have likely allowed the stock market as a whole to recover and gain value. Additionally, since the companies D'Jeanea invested in remained solvent during the recession, it is likely they also recovered and gained value. Therefore, it is most likely that her portfolio has gained value and is worth as much or more than it was in 2007.

D'Jeanea Inherited Money from Her Grandparents in 2007 and Invested