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Because investment objectives deal with the future, it is useful to plan
more than 5 years in the future.
A long-term investment objective involves a time period of 2 years or
less.
Question 2. 2. (TCO 5) Eric Peltz earns $70,000 a year. His monthly
expenses total $3,600. What is the minimum amount of money that
Mr. Peltz should set aside in an emergency fund?
$1,800
$3,600
$10,800
$21,600
$35,000
Question 3. 3. (TCO 5) You currently hold a $1,000 corporate bond;
however, if interest rates in the overall economy increase, which of the
following is most likely to be the market value of this bond?
$900
$1,100
$1,000
The value of the bond will not change.
It is impossible to determine whether the bond's value will increase or
decrease.
Question 4. 4. (TCO 5) Which of the following individuals should have
the highest tolerance for risk?