receives a return depending on the fund's overall performance as a whole. A mutual fund that seeks to imitate

Access for free at openstax.org
17 • Self-Check Questions 431

the overall behavior of the stock market is called an index fund.

We can also regard housing and other tangible assets as forms of financial investment, which pay a rate of

return in the form of capital gains. Housing can also offer a nonfinancial return—specifically, you can live in it.

17.3 How to Accumulate Personal Wealth

It is extremely difficult, even for financial professionals, to predict changes in future expectations and thus to

choose the stocks whose price will rise in the future. Most Americans can accumulate considerable financial

wealth if they follow two rules: complete significant additional education and training after graduating from

high school and start saving money early in life.

Self-Check Questions

1. Answer these three questions about early-stage corporate finance:
{"creationdate": "2022-12-07T14:15:44-06:00", "upload_timestamp": "2026-02-07T15:37:44.339247", "uploaded_via": "batch_uploader", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "file_name": "Microeconomics3e.pdf", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "moddate": "2022-12-07T14:23:05-06:00", "producer": "Prince 14.2 (www.princexml.com)", "batch_upload": true, "title": "Principles of Microeconomics 3e", "file_type": ".pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "total_pages": 597, "file_size_mb": 26.99}