A Buy-And-Hold Strategy Would Work Best for Which of the Following

question 150

Multiple Choice

A buy-and-hold strategy would work best for which of the following people? Someone who:

• A) will retire in three years
• B) is 25 years old and just started a good job
• C) lives hand-to-mouth
• D) lives on Social Security checks

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.

Simple Rate Of Return

A financial metric that calculates the increase in profits or savings expected from an investment as a percentage of the initial investment cost.

Annual Cost Savings

The reduction in costs achieved during a fiscal year, enhancing the organization's profitability.

Discount Rate

This rate is applied within discounted cash flow analysis to determine the contemporary monetary worth of future cash movements.