Fund X Return % Fund Y Return% 15 8 24 11 -3 6 5 9 5 20 -2 6 -2 14 7 13 12 4. Make a decision table using the calculations above. Which investment will the advisor recommend if his client is near retirement Years 1 2 3 4

Q: 1. Concepts used in cash flow estimation and risk analysis You can come across different situations…

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A:

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Emergency Fund

The emergency fund is an amount that is kept aside to meet financial emergencies such as medical expenses and debt settlements. Emergency funds reduce the burden on people during their hardships. People save small portions of their earnings or paychecks as emergency funds to meet financial emergencies. Emergency funds should be saved or invested in such a way that they must be easily liquidated during emergencies. The main purpose of an emergency fund is its availability when required.