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?
O It has most likely gained value due to the uptick in the business cycle and is no doubt worth
as much or more than it was worth in 2007.
It has continued to lose value.
O It has grown then faltered and is most likely worth the same or less than it was worth in 2007.
O Since an economic recovery generally lasts an average of 10 years, her portfolio gained in
value but is currently on the down-turn as the economy entered another period of recession.