A Long-Term Technique Used by Investors Who Purchase an Equal

question 105

Multiple Choice

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called a

• A)dollar cost averaging.
• B)dividend reinvestment plan.
• C)buy and hold technique.
• D)regulated transaction.
• E)secured transaction.

Compute present and future values of lump sum amounts under various interest rates and time periods.

Determine the years required for an investment to reach a specified multiple under a given annual interest rate.

Calculate the interest rate earned on a bond based on its purchase price and future redemption value.

Evaluate investments using the concept of present value in scenarios involving different compounding frequencies.

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Definitions:

American Democracy

A system of government where power is vested in the people, who rule either directly or through freely elected representatives.

Popular Democracy

A form of democracy that emphasizes the participation of the general populace in governance and decision-making processes.

Twenty-sixth Amendment

An amendment to the United States Constitution that lowered the voting age from 21 to 18 years, ratified in 1971.

Federalists

Advocates for a strong federal government, dominating American politics in the late 18th century, known for supporting the ratification of the U.S. Constitution.