Other Factors Constant, the Future Value Will Be Smaller

question 200

Multiple Choice

Other factors constant, the future value will be smaller,

• A) the larger is its present value.
• B) the higher is the interest rate.
• C) the shorter is the time period t.
• D) the larger is the number of periods.

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Definitions:

Treasury Bonds

Long-term government bonds issued by the Treasury Department with maturity periods typically longer than 10 years.

Beta Coefficient

The beta coefficient measures the volatility of a stock or portfolio in comparison to the market as a whole, indicating its relative risk.

Systematic Risk Factors

Factors that affect the overall financial market and cannot be mitigated through diversification. These include interest rates, inflation, and economic recessions.

Economic Events

Economic events are occurrences with economic impact that affect an entity's financial position and performance, including transactions and market fluctuations.