Question

The four processes for solving financial problems are: a) rent, buy low, sell high, credit b) return, yield, growth, risk c) compound interest, standard deviation, average and correlation d) stocks, federal bonds, mutual funds and capital assets

Answer 1

Four processes for solving financial problems are:-

B) return, yield, growth, risk

Reurn is what a security rate of return will be over a specific period eill be

Yield is generally referred to as the return that will be received if security is held until it's maturity

Growth is the growth rate, generally it is the rate at which the security price will appreciate

Risk and return generally are correlated together, the higher the risk, higher the return and lower the risk, lower the return