SIX PRINCIPLES OF FINANCE
This “principle of finance” is consistent with a positive or natural sloping yield curve.
What is the principle that “money has time value?”
The principle that proves the value of invested funds is increased by the POWER of the reinvestment of the yield.
What is “compounding?”
Raw materials used to produce a good would most directly affect this aspect of a product.
What is its “cost.”
A “basis” point expressed as a decimal.
What is .0001 percent?
The name and location of the actual barbershop our course partnered with in Barbershop Biz.
What is “Skillz” barbershop in South Sacramento?
This principle holds that a “junk bond” (one with a low credit rating) should bring an investor a higher yield.
What is the principle of finance that “higher risk should equal higher return?”
For an investor, the principle that provides that this must remain untouched during the life of the investment to maximize its POWER.
What is the investment’s “principal?”
Consumer appetite for a product, shaped by heavy advertising and celebrity influencers would most affect this aspect of a product.
What’s is its “price?”
The percent expressed as 2000 basis points.
What is 20 percent?
The direction of an investor’s portfolio who purchased “AAPL” stock on September 1, 2019 and is still holding the stock.
What is “up?”
The stock performance of “Uber” since its IPO is INCONSISTENT with this principle of finance.
What is principle of finance that “financial markets should price efficiently?”
Which regard to the POWER of the Rule of 72:
72/TIME = ?
What is the “rate of return” (yield)?
The relevance of goods CONSUMED in a rural community relative to the calculation of the “Consumer Price Index” (“CPI”).
What is “none?”
This term is used in “Forex” trading as the measure of an increment of a full percent.
What is a “pip?”
The direction of an investor’s holdings in Uber after its “IPO” (Initial Public Offering) earlier this year.
What is “down?”
The recent firing of the Chief Executive Officer of McDonald’s Corporation is consistent with this “principle of finance.”
What is principle of finance that states that “ethics (reputation) matter(s)?”
Compound interest is created by the POWER of this.
What is “interest on interest?”
The relevance that “imports” play in the establishment of the Producer Price Index (“PPI”).
What is “none?’
The larger between these two numbers:
2 percent or 21 basis points
What is 2 percent?
This is what an investor does when he/she believes a stock’s value will decrease.
What is “short the stock?”
According to the six “principles of finance” a non-diverse investment portfolio should lead to this.
What is HIGHER risk?
When calculating the POWER of compounding, these two terms affect different parties but are calculated the same. Hint: They are dependent on whether one is a borrower or an investor!
What are “interest” and “yield?”
This “price index” is the first predictor of a coming inflationary period.
What is the “PPI?”
Today, an investment must have this much annual return in order to break even with the CURRENT rate of inflation. NOTE: Express your answer in “basis points.”
What is 180 basis points?
What it is called when an options investor buys a “put” and a “call” on the same stock.
What is a “straddle?”