The Last Three Times I Invested Money in the Stock

question 144

Multiple Choice

The last three times I invested money in the stock market, stock prices declined. Therefore, to prevent further declines, I must stop investing any more money.

• A) Missing the point.
• B) No fallacy.
• C) Straw man.
• D) False cause.
• E) Amphiboly.

---

Definitions:

Present Value

Today's worth of a single sum or series of future cash flows, discounted at a particular rate of return.

Future Cash Flow

The amount of money that is expected to be received or paid out by an entity in the future, often considered for investment or project valuations.

Discount Rate

It denotes the interest rate utilized for determining the present value of future cash flows in the course of discounted cash flow analysis.

Future Value

The value of an investment or cash flow at a specific future date, adjusted for time value of money and interest.