A basic knowledge of finance will help you with your personal investments by helping you understand
A) how to accurately predict changes in the short term interest rates.
B) how to determine the optimal dividend policy for each firm.
C) how to determine which technology is most likely to be accepted by consumers.
D) how to review companies and industries to determine their prospects for future growth and the risk inherent in those companies and industries.
E) how to predict the growth in sales for the firm.

Question

Quizplus · Accepted Answer

A basic knowledge of finance allows an individual to analyze financial statements and understand financial metrics such as profitability, liquidity, and leverage. This knowledge can aid in reviewing companies and industries to determine their prospects for future growth and the risk inherent in those companies and industries. Prediction of short-term interest rates, optimal dividend policy, acceptance of technology by consumers, and growth in sales for a firm are not directly related to finance.

A Basic Knowledge of Finance Will Help You with Your