Unit 4 Portfolio - 1 Derek Alexander Mrs Sara Busch...

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1 Derek Alexander Mrs. Sara Busch Economics 04 October 2019 Unit 4 Portfolio Money and Banking 1. What two factors are important to making the principle of "compounding" work? Time and interest rate. 2. What evidence indicates that corporate profits will rise? That people become interested in what you have and the demand starts growing as well as your productions. 3. Making Comparisons: If the average historical return on a stock market investment is 11%, why doesn't everyone put their money into stocks rather than into a savings account? Even if the stock market investment is 11%, there is still a risk involved. 4. Analyzing Information Agree or disagree with the statement: Stocks are the best long-term investment value. Why? Agreed. Long term, it’s a higher interest rate, and you can really earn more money easily through stocks. Financial Markets 1. Why is the first rule of investing to only invest money that won't be needed for at
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