Question

Use the graphs from below to help answer question 10. • Top Graph: Total Capital over time based on different savings rates • Bottom Graph: Human & Financial Capital (% Total Capital Bottom) $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2016 09 2018 2020 2002 2028 2030 ZEOZ VEOZ 960Z 2052 2054 2056 2058 2060 2062 2064 2066 2070 2072 ODBE 10. Total Capital can be deconstructed into Financial Capital & Human Capital. depicts how becomes a larger proportion of Total Capital over time. depicts how a lower savings rate leads to lower Total Capital appreciation over identical investment horizons. ; ; a) Region D b) Region D c) Region E d) Region E e) Region E . Financial Capital ; Human Capital ; Financial Capital ; Human Capital Financial Capital Finan Line C Line A ; Line A ; Line A ; Line C

Answer 1

Answer is "c"

The total capital can be deconstructed in to financial capital & human capital. Region E depicts how Financial Capital becomes a larger proportion of total capital overtime. Line A depicts how your lower savings rate leads to lower total capital appreciation over identical investment horizons.