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4 Written questions

4 Multiple choice questions

  1. a dislike of uncertainty
  2. the amount of money today that would be needed using prevailing interesting rates to produce a given future amount of money (1+r)^n = 100
  3. the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk
  4. the path of a variable whose changes are impossible to predict

4 True/False questions

  1. firm-specific riskrisk that affects only a single company

          

  2. fundamental analysisthe study of a company's accounting statements and future prospects to determine its value

          

  3. future valuethe amount of money in the future that an amount of money today will yield, given prevailing interest rates x/(1-r)^n

          

  4. compoundingthe accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future

          

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