Audrey Is Thinking About an Investment That Involves Buying a Written

question 8

Multiple Choice

Audrey is thinking about an investment that involves buying a written pledge by a corporation to repay a specified amount of money.It also pays interest every 6 months until it matures.What investment is Audrey thinking about purchasing?

• A)common stock
• B)preferred stock
• C)corporate bond
• D)real estate
• E)mutual fund

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Definitions:

Forecast

A prediction or estimate of future events, often based on analysis of current and historical data.

Exponential Smoothing

A forecasting technique that applies decreasing weights to past observations, with the most recent observations receiving the most weight.

Smoothing Constant

A parameter used in exponential smoothing models to weigh the significance of the most recent observation in forecasting.

Time Series

Time Series refers to a sequence of data points collected or recorded at successive times, often at regular intervals.