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The Future Value of an Ordinary Annuity of $1,000 Each

question 66

Multiple Choice

The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is ________.


Definitions:

Nonsystematic Variance

The portion of an investment's variance that is attributable to factors specific to its issuer and can be eliminated through diversification.

Market Index

A statistical measure reflecting the composite value of a selection of stocks, representing a specific market or a portion of it, used as a benchmark.

Active Portfolio

An investment portfolio that is managed with the intent to outperform the market through selecting and trading securities.

At-The-Money Call

An option contract with an exercise price that is approximately equal to the current price of the underlying asset.

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