Leticia is twenty-two years old and she has all of her savings in a Certificate of Deposit (CD) at the bank that currently pays an annual 1.5 percent yield. The account is protected by the FDIC so it is virtually risk free
She hopes to use her savings for a down payment on a new house in ten years. Inflation in house prices in her area has averaged 4 percent per year. What financial principle does she need to pay better attention to?
A) Nothing happens without a plan.
B) Waste not, want not, smart spending matters.
C) Risk and return go hand in hand.
D) All of the above are correct.
Answer: C
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a. union suppression b. unitarism c. pluralism d. partnership
If the drawer and the payee of a check have accounts at the same bank, the check is called an "on them" item when it is presented for payment by the payee
Indicate whether the statement is true or false
Jane, a financial analyst at a small food-processing company, was asked by the Chief Financial Officer to forecast the costs of the company's required raw materials over the next five years. You would advise her to
A. collect data carefully, use a simple forecast model, rely on increased accuracy farther into the future. B. collect data carefully, use a simple forecast models, do not allow for any unexpected events. C. collect data carefully, use a complex forecast model, do not rely upon it and it alone. D. collect data carefully, use simple forecast models, and make multiple forecasts to get an average. E. collect data carefully, use complex forecast models, and make multiple forecasts to get an average.
________, a measure of correlation between returns on investment i and returns on investment j is used to reflect risk
Fill in the blank with correct word.