A ________ Goal Is One in Which an Individual Is

question 38

Multiple Choice

A ________ goal is one in which an individual is interested in self-improvement,and a ________ goal is one in which an individual seeks to validate a personal attribute.

• A) intrinsic; extrinsic
• B) judgment; development
• C) extrinsic; intrinsic
• D) development; judgment

Understand the concept of risk management in personal investment planning.

Identify the roles and responsibilities outlined in the governance section of an IPS.

Comprehend the principle of duration matching in investment management.

Understand the difference between defined benefit and defined contribution plans including the risk bearing party.

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Definitions:

Levered

Pertaining to the use of borrowed capital or debt to increase the potential return of an investment.

Break-Even EBIT

The level of Earnings Before Interest and Taxes that a company needs to achieve in order to cover all of its operating expenses without making a profit or loss.

Unlevered Cost

The cost of an investment or project that does not include the effects of borrowing; also known as the cost of capital with no debt financing.

Annual Coupon

A fixed interest payment made by a bond annually until its maturity date.