"Knowing how to secure your financial well-being is one of the most important things you'll ever need in life. You don't have to be a genius to do it. You just need to know a few basics, form a plan, and be ready to stick to it. No matter how much or little money you have, the important thing is to educate yourself about your opportunities. At the SEC [Securities and Exchange Commission], we enforce the laws that determine how investments are offered and sold to you. These laws protect investors, but you need to do your part, too. No one can guarantee that you'll make money from investments you make. " Use the excerpt from the SEC's Guide to Saving and Investing to answer the

Q: Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers to pay…

A: An investment is an asset or item acquired with the goal of generating income or appreciation.…

Q: List three different ways that a risk-averse person can reduce financial risk.

A: We can say, Financial Risk would result in the risk which would be borne by the investor which…

Q: You are a financial planner. One of your clients is 40 years old and wants to begin saving for…

A: The annual deposit in the stock market account is $5000. The number of deposits is (n) = 20.The…

Q: The bonds' value is not affected by inflation because most bonds pay a fixed coupon rate over time.…

A: Bonds are units of corporate debt being issued by companies and also being securitized as tradeable…

Q: On the golf course, John was playing near a group of four golfers. One of the four golfers was a…

A: The efficient market hypothesis considers that generally any market is efficient. However, the…

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: Last year you purchased a bond with an interest rate of 5 percent. Now the interest rate on the bond…

A: Bonds are debt instruments with long maturities with annual or semiannual interest rates to be paid…

Q: Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to…

A: Return on Investment: The return on investment is the benefit gained by the investor from making an…

Q: Sam is looking to purchase his first multi-family investment property. If you were Sam's agent, what…

A: Liquidity refers to the ability of an asset to be converted into cash easily whenever required. Cash…

Q: Congratulations! You've won the state lottery! The lottery advertised a $20,000,000 grand prize.…

A: The discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to…

Q: Suppose you invested $94 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of…

A: Calculation of dividend yield: Dividend = 0.50, stock price = $95 =0.50/95 =0.52%

Q: at is a bond?     A certificate representing a loan from an investor to a corporation or…

A: A bond is a debt instrument that a business or government issues to raise funds, and pays fixed…

Q: Why it is not ideal to invest according to what the board lot is telling you? 2. What should be the…

A: A board lot is the basic trading unit for round lots determined by a stock exchange. The objective…

Q: Does owning a share of stock in a company makes you a major decision maker for that company?

A: Owning a share of stock in a company makes you a shareholder, but you can't interfere in day to day…

Q: Suppose that a friend of yours recently opened her own business. She is happy because it generated…

A: An organization or entrepreneurial entity engaging in commercial, industrial, or professional…

Q: Your 13-year old cousin knows that you are in college and learning corporate finance. She is very…

A: Compounding is the process of generating earning on an investment's earnings.Finding the present…