Answer:
B) She has been notified by her employer that due to corporate downsizing her position is being eliminated.
Equities carry a high risk and if her high paying job is at risk, she will probably need to reduce her portfolio's risk.
Explanation:
the other options are wrong because:
A) Equities are rebounding slowly after a 2-year slump. ⇒ if this is true, then she should be happy with her current portfolio since 80% of it are equities.
C) The father of her children has established trust funds for each of them in the amount of $50,000 each. ⇒ if this is true, then she should be happy with her current portfolio since equities carry a higher risk but can also yield much higher returns. She should be OK with the high risk because her children will be covered by the trust fund.
D) She will be remarrying a person of considerable wealth next month. ⇒ if this is true, then she should be happy with her current portfolio since equities carry a higher risk but can also yield much higher returns. She should be OK with the high risk because she will marry a wealthy man, so the risk shouldn't be a a problem.
