Questions from Personal Finance


Q: Describe the benefit of buying guaranteed renewable term insurance.

Describe the benefit of buying guaranteed renewable term insurance.

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Q: Explain why the amount of “insurance” declines over time under

Explain why the amount of “insurance” declines over time under a cash-value life insurance policy.

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Q: Distinguish between cash-value life insurance with a fixed return and

Distinguish between cash-value life insurance with a fixed return and with a variable return.

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Q: Comment on how investing differs for both short and long-term

Comment on how investing differs for both short and long-term investments.

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Q: Distinguish between the terms income stocks and growth stocks.

Distinguish between the terms income stocks and growth stocks.

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Q: Define beta and explain what it means.

Define beta and explain what it means.

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Q: What is fundamental analysis and why is it popular?

What is fundamental analysis and why is it popular?

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Q: Choose three measures of corporate earnings that you might use when selecting

Choose three measures of corporate earnings that you might use when selecting a stock in which to invest and say why you like them.

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Q: Of all the mistakes that people make when planning for retirement,

Of all the mistakes that people make when planning for retirement, which one might be likely to negatively affect your retirement planning the most? Give reasons why.

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Q: What are the five steps in figuring a potential rate of return

What are the five steps in figuring a potential rate of return to invest in a stock?

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