Chapter 5: The Time Value of Money
o Money has time value amount of money received today is worth
more than the same dollar amount would be if it were received a
year from now because you can invest it.
o Interest: the return earned by or the
Chapter 8: Analysis of Risk and Return
8.2 Meaning and Measurement of Risk
Risk: possibility that actual future returns will deviate from
o 8.2a Probability Distributions
Percentage chance of occurrence of each of the
Stock = variable-income security
Market price tends to fluctuate more than price of bonds and
o 7.1a Understanding Stock Quotations
% price change for the calendar year to date.
52-week high (Hi) and low (