Which of the Following Is True of Introductory Questions

question 12

Multiple Choice

Which of the following is true of introductory questions?

• A) These can be used to norm the interviewee.
• B) These are asked in an informal interview but not in a formal interview.
• C) These are generally confrontational.
• D) These cannot be used to build rapport.

Recognize the concepts of risk premium and how it influences investment decisions.

Calculate and interpret holding-period returns on investments.

Understand the concept and calculation of expected returns and their standard deviation.

Differentiate between nominal, real, and inflation rates and calculate real rate of return.

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Definitions:

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.

Nominal Rate

The interest rate before adjustments for inflation, as opposed to the real rate, which is adjusted for inflation.

Rate of Inflation

The percent change in the price level of goods and services in an economy over a period of time, usually measured annually.

Interest

Interest is the charge for borrowing money typically expressed as an annual percentage rate, or the income earned from lending money.