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Terms in this set (13)
The amount of money borrowed or invested initially
Annual Percentage Yield describes interest paid to a saving account or certificate of deposit
Interest earned only on the original principal amount invested
interest earned on both the principal amount and any interest already earned
a general increase in prices and fall in the purchasing value of money.
the money an investor receives above and beyond the sum of money initially invested
Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
The degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio.
A heirarchy of investment tools organized by level of risk. Bonds are low risk, speculative investments are at the top.
rule of 72
a technique for estimating the number of years required to double your money at a given rate of return
Indicates how much and how quickly the value of an investment, market, or market sector changes.
an increase in value
A decrease or loss in value
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