Future Value Computations Are Often Referred to as

question 72

Multiple Choice

Future value computations are often referred to as

• A) Discounting.
• B) Present value.
• C) Compounding.
• D) Simple interest.
• E) An annuity.

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Definitions:

Intrinsic Value

An estimate of the true value of an asset, including tangibles and intangibles, based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Beta Coefficient

An index of a security's fluctuation in value as compared to the broader market, signifying its relative risk versus the average market risk.

Characteristic Line

In finance, a line that describes the relationship between the returns on a stock and the returns on the market, used in the Capital Asset Pricing Model (CAPM).

Stable Equilibrium

A state in which a system, once disturbed, returns to its original condition because the equilibrium is stable.