Saving for Retirement Is Different from Most Other Forms of Saving

question 1

Multiple Choice

Saving for retirement is different from most other forms of saving,

• A)because it need not be placed in diversified investments.
• B)because of the special tax status accorded such savings.
• C)because such savings can be placed in more liquid investments.
• D)because such savings can be placed in more liquid investments and because it is accorded special tax status.

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Definitions:

Rate Of Return

The financial escalation or contraction in value of an investment during a chosen duration, displayed as a percentage of the investment’s starting stake.

Stock Price

The cost of purchasing a single share of a company's stock, determined by the supply and demand for it in the market.

EPS Growth Rate

The yearly rate at which a firm's earnings per share (EPS) increases or is expected to increase.

Rate Of Return

The financial gain or loss achieved on an investment during a predetermined period, shown as a percentage of the investment's initial outlay.