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13 Cards in this Set
- Front
- Back
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If you had to use one word to define risk, that word would be.
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Uncertainty
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The entire process of estimating return and risk for individual securities is kown as.
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Securities Analysis
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With STOCK the two basic types of risk are.
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Market or Business Risk (systematic risk)
Finacial risk (Failure of Busines/Bankrupt) |
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Three BOND risks.
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Credit risk (will they Pay?)
Interest/money rate risk Purchasing power/inflation risk |
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What is the calculation to find your current yeild?
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What you get divided by what you paid.
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What is the current yeild of a Bond purchased at 92 and carries an 8% coupon rate.
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8.7% you purchased the bond at discount so you are getting a better that 8% return.
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A __________ _________ is an investor who invests in issues that make money in good and bad times. Very low risk, public utilities, securities, food companies, etc...
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Defensive investor
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The method of investing that allows the investor to buy at the lowest average cost.
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Dollar cost averaging
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When more money is introduced into the economy what accures?
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Inflation
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When people hold onto their money and there is less out in the economy we have a.
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Deflation
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What Federal organization helps to regulate inflation/Deflation?
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Federal Reserve
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Typically, government policies suggesting more spending in military or social programs etc... are Inflat/Deflat.
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Inflationary
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A reduction of taxes would by a typical inflat/deflat policy.
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Deflationary
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