Chapter 14 - The Basic Tools of Finance

0.0(0)
Studied by 1 person
linked notesView linked note
call kaiCall Kai
Locked
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/7

flashcard set

Earn XP

Description and Tags

Finance

Last updated 8:04 PM on 4/13/22
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai
Chat

No analytics yet

Send a link to your students to track their progress

8 Terms

1
New cards
Random walk
________ - the path of a variable whose changes are impossible to predict.
2
New cards
Firm-specific risk
________ - the risk that affects only a single company.
3
New cards
Fundamental analysis
________- The study of a companys accounting statements and future prospects to determine its value.
4
New cards
Finance
________- the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk.
5
New cards
Risk aversion
________- A dislike of uncertainty.
6
New cards
Present value
________- the amount of money today that would be needed, using prevailing interest rates, to produce a given future amount of money.
7
New cards
Efficient markets hypothesis
________- The theory that asset prices reflect all publicly available information about the value of an asset.
8
New cards
Diversification
________- The reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks.