Explain how a dividend reinvestment plan is similar to compounding and the time value of money

What will be an ideal response?


Answer: With compounding, the interest you earned from previous periods earns interest in the current period. As time progresses, the interest earning interest becomes a substantial part of your future value. By reinvesting all dividend and capital gains distributions into additional shares of the fund, you are basically compounding these new shares which will earn more distributions, additional new shares, and this reinvesting will make up a substantial portion of the future value of your total investment.

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Answer the following statement(s) true (T) or false (F)

1. Decreasing term life insurance is the least expensive type of life insurance. 2. Straight whole life becomes paid up after a certain number of years. 3. An HMO is a form of fee-for-service health insurance. 4. An HMO contracts with hospitals and physicians to provide health care to HMO subscribers at a set fee for those services. 5. A PPO provides more flexibility than an HMO.

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Virtual workplace is the viewing of the physical world with computer-generated layers of information added to it.

Answer the following statement true (T) or false (F)

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When returning after expatriation, what can the U-Curve be extended to?

a) O-Curve b) UR-Curve c) W-Curve d) G-Curve.

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Which of the following statements are not true regarding the randomized block design?

a. In this design, persons or test units are first arranged into similar groups, or blocks, then the treatments are randomly assigned. b. Blocking helps reduce error variation by ensuring that the treatment groups are comparable in terms of the blocking variable. c. This design assumes that interactions exist between the blocks and the treatments. d. Although the blocking variable can be viewed as representing a second independent variable, it is introduced solely for the purpose of controlling error variation. e. All of these statements are true.

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