A Random Walk Down Wall St Questions with complete solution

A Random Walk Down Wall St Questions with complete solution Castle in the Air Theory - correct answer theory focuses on the psychology of the market crowd. Profits are made by foreseeing changes a short time ahead of the general public. Firm Foundation Theory - correct answer Fluctuations around this value create buying and selling opportunities, because the fluctuations will eventually be corrected. Intrinsic Value of Stock Formula - correct answer dividing the value of the business by the number of outstanding shares of the company in the market Intrinsic Value - correct answer is a measure of what an asset is worth. Call Option - correct answer the option to buy shares of stock at a specified time in the future Put Option - correct answer the option to sell shares of stock at a specified time in the future Income - correct answer Comes from wages and salaries. Investing - correct answer The process of setting money aside to increase wealth over time for long-term financial goals such as retirement Saving - correct answer income not used for consumption Real Capital - correct answer Long-term productive assets (plant and equipment) (Roads, Airports, ETC) Financial Capital - correct an