CvS Interest
The Definition of Simple Interest.
What is the straightforward way to calculate interest that only applies to the original amount of money borrowed or invested (the principal), not on any accumulated interest?
The definition of Liquidity.
What is how quickly and easily an asset can be turned into cash without losing value?
Based off of the definition of return will your return always be positive?
What is taking the total investment portfolio and dividing it among asset categories ie. stocks bonds and cash?
The definition of a Trading Fee.
What is the money you pay a broker or app each time you buy or sell an investment?
After having input 150 dollars, with 20% simple Interest, when cashing out on your 8th year of investment, you will receive this much money. (year 1 is 150 dollars)
What is 360 Dollars?
Year 1 : 150, Year 2 : 180, Year 3 : 210, Year 4 : 240, Year 5 : 270, Year 6 : 300, Year 7 : 330, Year 8 : 360
When investing over a longer period of time, you can tolerate a higher ______
What is risk?
What are higher amounts of money?
The Definition of Diversification.
What is spreading of assets within an asset class?
Even if an investment makes money, these two things can lower how much money you actually keep.
What are taxes and fees?
When starting an account with 300 dollars, with a compound interest of 5 percent annually. You will receive this amount of money after cashing out on the 3rd year of investment. (year one is 300 dollars)
What is 330.75 Dollars?
Year 1 : 300, Year 2 : 315, Year 3 : 330.75
Why is understanding your time horizon important before investing?
What is because it allows you to calculate the risk you can take and what types of investments align with their goals?
Although 2 separate concepts, why are risk and return paired together?
If allocation is a houses blueprint, what would diversification be?
This yearly percentage fee is charged by many mutual funds and ETFs, even if you never trade with them.
For a 15-year bond, the method of interest most beneficial to the buyer would be this kind, paid in full at maturity
What is the person for two years should decrease their risk, while the person in 30 should increase their risk and invest more aggressively?
T or F : Just because you can earn more money with higher risks and amounts, means you should ALWAYS put forth more money.
What is false, outcome could be a negative net gain of money or you could lose money?
These are examples of Asset Classes. (Must State 3)
What are stocks, bonds, real estate, cash commodities etc?
A Student Invests 1000 dollars and earns 200. They then pay 20 dollars in fees and 30 dollars in taxes. The money they actually keep is this.
What is 150 Dollars?