Great for those with a modest income, draws some interest and can withdrawal without penalty.
Answer: c. Customer C
Explanation:
With a risk- tolerant young customer with a long investment time horizon it would be best to include more stocks in their portfolio as stock have the opportunity to increase in value over a long period of time especially small cap. equities.
The problem is that stock prices are more volatile meaning that they are riskier. This is fine however as the customer has risk tolerance and can take the risk.
Answer:
<u>Semi- strong form efficient markets</u>
Explanation:
The efficient market hypothesis states that securities are fairly priced and eliminates the possibility of investors earning abnormal gains via arbitrage.
Under the theory, 3 forms of markets are specified which are, strong form, semi-strong form and weak form of efficient markets.
Under the semi strong form of efficient markets, the price of a stock is based upon the available past information and trends as well as current public information available.
Under this form of markets, security prices quickly adjust to latest available public information thereby eliminating the importance of conducting fundamental and technical analysis to unravel price movement trends.
Answer: Insurance premium
Explanation: