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THE BASIC INVESTMENT CONCEPTS

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Choose yes if the definition is correct, and no if it is incorrect.

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THE BASIC INVESTMENT CONCEPTS
 

THE BASIC INVESTMENT CONCEPTSOnline version

Choose yes if the definition is correct, and no if it is incorrect.

by Bengisu
1

Mutual Fund - An investment vehicle consisting of a portfolio of stocks, bonds, or other securities managed by professionals.

2

Index Fund - A fund constructed to match or track the components of a specific financial market index.

3

Volatility -A measure of the dispersion of returns or price fluctuations for a given security.

4

Yield-A loan made by an investor to a borrower (government or corporate) in exchange for regular interest payments.

5

Opportunity Cost-Realigning the weightings of a portfolio's assets to return to the target allocation.

6

Market Efficiency - The theory that asset prices reflect all available information, making it hard to beat the market.

7

Net Worth-The anxiety that an investor misses a profitable trend, leading to impulsive decisions.

8

Interest Rate-The quantity of goods or services that can be purchased with one unit of currency.

9

Bear Market - A market condition in which securities prices fall 20% or more from recent highs amid widespread pessimism.

10

Dividend - A portion of a company's earnings distributed to shareholders, usually in the form of cash.

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