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chapter 11 Section 2

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Afiya Slue

on 16 April 2014

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Transcript of chapter 11 Section 2

chapter 11 Section 2
Investment Objective
Financial goal used to determine if an investment is appropriate.
Time
short term or long term investment
Income
The amount of money you have to save after current expenses.
Money lost due to emergencies.
Risk and Return
Risk: Possibility for loss of an investment.
Return: Profit or loss on an investment.
Can refer to interest paid on a savings account.
Diversification: Practice of distributing investments among different financial assets to maximize return and limit risk.
Step 4
Step 5
Afiya Slue & Mariam Hakim
pd. 2
Ex: Short term goals- Vacation
Long term goals- retirement, saving for college

Investing in a market economy
2 Issues that play a role in investments
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