Your Investment Advisor Informs You That You Do Not Need

question 65

Multiple Choice

Your investment advisor informs you that you do not need to pay a fee for his services.Instead,he invests your money for one month and keeps all of the proceeds before investing it for you.If your advisor makes and keeps a 1% return on your investment,what is his EAR if the earnings rate could be extrapolated for one year?

• A)1.00%
• B)12.00%
• C)12.68%
• D)126.82%

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Definitions:

Group Diversity

The presence of a wide range of differences among members within a group, including ethnicity, gender, age, skills, and beliefs.

Creativity

The ability to produce original and valuable ideas or solutions to problems, often by thinking in novel ways.

Functional Diversity

Diversity in a group or organization that encompasses the differences in skills, knowledge, background, and abilities among members.

Talents

Natural aptitudes or skills that an individual possesses, which can be developed through practice and commitment.