Holding all else constant the future value of an investment


Holding all else constant, the future value of an investment will increase if:

(a) the investment’s expected future cash flows involve more, as opposed to less, uncertainty.

(b) the investment is compounded for a larger, as opposed to a smaller, number of periods.

(c) the investment is compounded at a higher, as opposed to a lower, interest rate.

(d) both b and c.

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Financial Management: Holding all else constant the future value of an investment
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