Jack Recently Received a Considerable Sum of Money by Selling

question 34

Multiple Choice

Jack recently received a considerable sum of money by selling his property. He decides to invest this sum in a diversified set of securities. He plans to retain these securities for a long time until they have appreciated.Jack is using the _____ investment strategy.

• A)market timing
• B)investing for growth
• C)value investing
• D)buying and holding

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Definitions:

Total Income

The sum of all earnings or revenue generated by an individual or entity, including wages, investment returns, and other sources.

Wealth

The total value of all financial assets and physical possessions owned by an individual or entity, minus any liabilities owed.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Budget Line

A graphical representation showing the combination of goods a consumer can purchase with a given income, based on the prices of those goods.