Investing
Payments that companies award shareholders (usually quarterly) for buying and holding their stock are known as these
Dividends
This letter of the Greek alphabet denotes the volatility of a security compared to the market. Used as a measure of risk of security.
Beta
The sustained increase in the prices of goods and services in an economy over time is known as what?
Inflation
Aidan has $10 in his bank account after a night at the bars. Priya has $75 in her bank account after a weekend in Houston. What is the total value of their combined bank accounts?
$85
The money you earn after accounting for taxes and deductions is not gross income, but what?
Net income
This Magnificent 7 stock currently has the highest market capitalization of any firm (estimated $4.3 trillion) and is a leader in semiconductor and GPU industries.
NVIDIA
Firm-specific risk can be eliminated from a portfolio by buying many different company stocks in different industries. This strategy is known as what?
Diversification
In an economic downturn, the US government passes a bill to increase federal spending and cut income and corporate taxes. This policy is known as what?
Fiscal Policy
Nominal rates are 15% while the inflation rate for the period is 8%. Using whole numbers, what is the REAL interest rate?
7%
The interst rate for credit cards often charged on unpaid statement balances is known as what?
APR, Annual Percentage Rate
When selling an investment on the market, the IRS taxes the proceeds using this tax rate if the investment was held for longer than a single calendar year.
Long-Term Capital Gains Tax
Junk-grade bonds are riskier assets that generate higher returns for investors because of what type of risk?
Default/credit risks
Prices of complement/substitute goods, income, changes in tastes/preferences, future expectations, and WHAT are the 5 shifters of demand in economics.
Number of buyers/consumers
If you deposit $200 in a savings account earning 5% annual interest, this is the amount of interest you earn in ONE Year
$10 of interest
The 50/30/20 budgeting rule allocates after-tax spending to needs, wants, and what other category? More than one answer accepted
Debt repayment, savings, investing, retirement, etc.
The analysis of a firm’s financial statements and current economic state to determine an intrinsic value of the stock is known as what process?
Fundamental Analysis
The returns of US government-backed treasury bonds are used as a measure of this rate used in the capital asset pricing model.
Risk-free rate
This economic situation in which both inflation and unemployment are higher than average at the same time is commonly known as what?
Stagflation
If you invest $1,000 at 10% annual interest compounded once per year, this is the value after 2 years of the account.
$1,210
3 to 6 months of expenses should be saved in this type of fund in case of unexpected job losses, car repairs, etc.
Emergency Fund
The current value of a mutual funds' assets minus their liabilities, divided by the number of shares outstanding, is known as what?
Net Asset Value (NAV)
he risk that a financial hedge will fail because the price of the asset being hedged and the price of the hedging instrument do not move in perfect alignment.
Name the type of unemployment in which workers are in transitionary stages of life, such as graduating college or switching jobs.
Frictional Unemployment
You earn $900 a week, and 20% goes to taxes while 10% goes to savings; this is the amount left to spend at the end of the week
$630
Certified Financial Planners are expected to adhere to this duty and act in the best financial interests of their clients.
Fiduciary Duty