What Are the Contents and Uses of a Financial Plan

question 104

Essay

What are the contents and uses of a financial plan?
B.In fact, planners must be constantly on guard against the fascination of detail, because giving in to it means slighting crucial issues like investment strategy, debt policy, and the choice of a target dividend payout ratio.

---

Definitions:

Probability

The likelihood or chance that a particular event will happen, quantifiable as a value between zero (impossible) and one (certain).

Independent

Pertains to variables or events that are not influenced or affected by each other.

P(A ∪ B)

The likelihood that either event A or event B, or both, will happen.

P(A ∪ B)

The probability that either event A or event B, or both, occur.