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chapter 11 Section 2
Transcript of chapter 11 Section 2
Financial goal used to determine if an investment is appropriate.
short term or long term investment
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.
Afiya Slue & Mariam Hakim
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