The Relationship Between the Disburse Cash and Issue Stock Events

question 3

Multiple Choice

The relationship between the Disburse Cash and Issue Stock events is modeled as being ________ because each stock issuance may be linked to many dividend payments and,conversely,a particular dividend payment may be related to multiple different issuances of stock.

• A)1:1
• B)1:N
• C)M:N
• D)1:M.

Understand the basic types of mutual funds and their investment strategies.

Learn how to assess mutual fund safety and risk.

Recognize the importance of management, fees, and expense ratios in mutual fund selection.

Understand the benefits and principles of diversification in mutual funds.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to gauge inflation or deflation.

Producer Price Index

An economic indicator that measures the average change over time in the selling prices received by domestic producers for their output.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Nominal GDP

GDP that has not been adjusted to account for inflation.