Questions from Personal Finance


Q: What are bonds? How do bonds provide a return to investors

What are bonds? How do bonds provide a return to investors?

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Q: How do mutual funds operate? Who manages mutual funds? How

How do mutual funds operate? Who manages mutual funds? How are coupon or dividend payments handled by the mutual fund? Can investors incur capital losses with mutual funds?

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Q: In what geographic areas is the price of land relatively high?

In what geographic areas is the price of land relatively high? What components make up the return from investing in real estate?

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Q: What is the formula for estimating returns on dividend-paying stocks

What is the formula for estimating returns on dividend-paying stocks? Describe each element of the formula. How do you calculate the dollar amount of your returns?

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Q: What is the difference in tax rates on long-term versus

What is the difference in tax rates on long-term versus short-term capital gains?

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Q: How can investments in stock increase your wealth? How would you

How can investments in stock increase your wealth? How would you calculate the value of a stock investment of a single sum over time? How would you calculate the value of a stock investment of a speci...

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Q: Describe how economic conditions might affect certain investments.

Describe how economic conditions might affect certain investments.

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Q: Define the risk of an investment. What types of firms are

Define the risk of an investment. What types of firms are particularly risky?

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Q: Why do investors measure risk? Describe the two common measures of

Why do investors measure risk? Describe the two common measures of risk.

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Q: What is the return-risk trade-off? What types

What is the return-risk trade-off? What types of stock investments are particularly tempting for stock investors? What other factors must individual investors consider before making this type of inves...

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