TIME VALUE OF MONEY

Time Value of Money



Time Value of Money

Note: see additional file (20111023062356_30_1) for your assignment

Investment Decision

Investors adopt a range of strategies, depending on their objectives. Investments can be made in government securities, bearing minimal, if any, risk of default and earning a low rate of interest. Investors could also put resources in certificates of deposit in the local bank, which will be insured by the Federal Deposit Insurance Corporation (FDIC) and which will earn a low rate of interest as well.

A second strategy is to build a diversified portfolio of stocks, bonds, and cash. Depending on ...