Fundamental Economic Concepts: Introduction CHAPTER 1: 1. Risk is best thought of as a. the chance that the actual return will be zero or negative b. the chance that the actual return will differ from the expected return c. the chance that the expected return will be lower than what investors demand d. the chance that the expected return will be incorrectly estimated 2. Which of the following is INCORRECT about risk-averse investors? a. They always try to minimize their risk regardless
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popular type of investment company is a: a. unit investment trust. b. mutual fund. c. closed-end investment company d. real estate investment trust. 5. An unmanaged fixed income security portfolio handled by an independent trustee is known as a: a. junk bond fund b. closed-end investment company. c. unit investment trust. d. hedge fund. 6. Which of the following is a major objective of unit investment trusts?
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The main role of a unit trust consultant would be distributing unit trust or mutual funds on behalf of a unit trust managemen company/ bank to the public. By explaining and analysing each and every fund that are distributed‚ unit trust consultant aid their clients in giving their best bets on their investments. In reality‚ a unit trust consultant is helping their clients in achieving financial independence at earlier age. And these need to start from educating them how important a financial plan
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NEWBORN CHILD TO SAVE FOR THE CHILD’S EDUCATION 3) IN SELECTING THREE DIFFERENT INVESTMENT OPTIONS‚ A BROKER OFFERS AN INVESTOR THREE MUTUAL FUND OPTIONS. THE FIRST IS AN "AGGRESSIVE FUND" AND ON AVERAGE RETURNED 12% a year; the second is a BOND MUTUAL FUND that invests mainly in U.S. Treasuries and on average pays 4% per year; the third option is an International Fund that invests in Third World Countries and is paying 15% per year. 4) You complete a credit card application to open a Visa Card
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Design an Investment Strategy using Behavioral Finance Concepts Introduction Traditional economic and finance literature assumes that investors approach risk and return rationally. However‚ in real life‚ the emotions drive investors to make many fundamental missteps during investment. After study Behavioral Finance this year‚ I understand how people actually make decisions and ways in which they tend to deviate from full rationality. Understanding of these biases can help me to avoid some
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calculated based on this amount. Basic usually depends on your grade within the company’s salary structure. Many deductions are also dependent on the basic – for example‚ your contribution (and the matching component by your employer) to provident fund is 12% of your basic. It is taxable. Dearness Allowance (DA) The Dearness Allowance is paid out to compensate for increase in the general cost of living due to inflation. DA is paid out every month. It is a taxable component of your salary. Incentive
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THE FINANCIAL SYSTEM – NATURE‚ EVOLUTION AND STRUCTURE A financial system is an integral part of a modern economy. An effective system of payment for goods and services enables huge production and the specialization of labor in the economy. The word „system‟ means an ordered‚ organized and comprehensive assemblage of facts‚ principles or components relating to a particular field and working for a specified purpose. But the word system in the term „financial system‟ represents a set of closely held
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that she wants to invest in an index fund tied to S&P stocks and in an Internet stock fund. However‚ she is very concerned about the volatile of Internet stocks. Therefore‚ she wants to balance her risk to some degree. She has decided to select an index fund from Shield Securities and an Internet stock fund from Madison Funds‚ Inc. She has also decided that the proportion of the dollar amount she invests in the index fund relative to the Internet fund should be at least one-third but that
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Monkeys Pick Stocks Better than Experts? — Automatic Finances 頁1/3 Can Monkeys Pick Stocks Better than Experts? by Jason Unger We’ve spent plenty of time explaining why investing in passive‚ low-cost index funds will out-earn actively managed funds in the long-run‚ and that most fund managers can’t even outperform the indexes they’re trying to beat over time. 33 tweets retweet The underlying theme of these posts is that stock market "experts" aren’t really experts at all. They may
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February 9th‚ 2015 Bill Miller and Value Trust is a well-known mutual fund company that has outperformed the S&P 500 from 1991 until 2005 and this is the longest streak of mutual fund success in history. The mutual fund was the managed by William H. “Bill” Miller III who by concept was a contrarian‚ which means that his investments were focused on low price‚ high value funds. The “measure “of the industry are based on indexes and every fund is compared to the S&P 500: which is considered the most accurate
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