Exploring Investments
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Questions and Answers

Which type of investment is the focus of today's lesson?

  • Bonds
  • Stocks (correct)
  • Property
  • Commodities
  • What is the formula for calculating dividend yield?

  • Dividend yield = dividend + stock price
  • Dividend yield = stock price / dividend
  • Dividend yield = dividend * stock price
  • Dividend yield = dividend / stock price (correct)
  • What does the term 'equities' refer to in the context of investments?

  • Ownership in a company (correct)
  • Real estate properties
  • Fixed-income securities
  • Raw materials
  • What is the main difference between stocks and bonds?

    <p>Stocks offer ownership in a company, while bonds are a form of debt/lending.</p> Signup and view all the answers

    What factors can influence the price of financial assets like stocks?

    <p>Market conditions, interest rates, company performance, new information, and investor demand.</p> Signup and view all the answers

    What is the formula for calculating nominal rate of return?

    <p>Nominal rate of return = Profit / Purchase Price</p> Signup and view all the answers

    Why is it important to consider the real rate of return when making investment decisions?

    <p>The real rate of return takes into account the inflation rate, providing a more accurate measure of the investment's profitability.</p> Signup and view all the answers

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