Write the Word or Phrase That Best Completes Each Statement

question 28

Short Answer

Write the word or phrase that best completes each statement or answers the question.
-John Forgetsalot deposited $100 at a 3% annual interest rate in a savings account fifty years ago, and then he
promptly forgot he had done it. Recently, he was cleaning out his home office and discovered the forgotten
bank book. How much money is in the account?

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Definitions:

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Nondiversifiable Risk

Risk factors common to the whole economy; also called market risk or systematic risk.

Diversifiable Risk

The risk associated with individual investments that can be reduced through diversification by investing in a variety of assets.

Unique Risk

Risk that is specific to a single asset or to a small group of assets, also known as unsystematic risk.