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Which of the Following Are the Reasons Why Investors Use

question 19

Multiple Choice

Which of the following are the reasons why Investors use market indexes?
I. Market indexes are used as a benchmark to measure portfolio performance
II. Market indexes can be used to estimate the future movements of the indexes
III. Market indexes are helpful to determine relationship between past price movements and economic variable

Understand the concept and applications of virtual reality.
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Understand how computers manipulate and control data.
Recognize the strategic value of hardware investments.

Definitions:

Inflation

The pace at which the overall price level of goods and services increases, thereby diminishing buying power.

Retirement Income

The funds an individual receives after retiring, which can come from various sources including pensions, savings, and social security.

Actuarial Calculations

The mathematical analysis performed by actuaries to calculate risks, premiums, life expectancies, and pension contributions, based on statistical data.

Assumed Investment Rate

The hypothesized annual rate of return expected from an investment used in financial planning and projections.

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