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Finance Questions Essay

648 words - 3 pages

Compound Interest the situation in which interest paid on an investment during the first period is added
to the principal. During the second period, interest is earned on the original principal plus the interest
earned during the first period.
number of years
Annuity a series of equal dollar payments made for a specified
Annuity Due annuity in which the payments occur at the beginning of each period
Perpetuity an annuity with an infinite life
Amortized Loan a loan that is paid off in equal periodic payments
Risk potential variability in future cash flows
standard deviation -a measure of risk when looking at stock in isolation
standard deviation -measure of the dispersion of ...view middle of the document...

part is over ____. do 135:28

more long term is ______ volatile than short

variance, standard dev, beta
security market line CAPM what to use to measure risk______

risk free rate for a treasury, required rate or return=?

aren't reduce risk by combining stocks that _____ perfectly correlated

beta measure of the...

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