Investments — Test Answers — Mathematics for…

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Ayanna's portfolio consists of 150 shares of Stock G, bought at $⁢20 per share, and 100 shares of Stock H, bought at $⁢50 per share. Stock G is now worth $⁢22 per share, and Stock H is valued at $⁢48 per share. Find the initial and current values of Ayanna's portfolio.

Answer:

8000|8100

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You invest $⁢5,000 in a bond that pays a fixed annual interest rate of 4% How much interest will you earn in one year? Simple interest formula: I=P⋅r⋅t

100 dollars

200 dollars

250 dollars

300 dollars

In a stock market index, Company A has a stock price of $⁢60 , Company B has a stock price of $⁢100 , and Company C has a stock price of $⁢140 Which expression shows how to calculate the price-weighted stock index?

($⁢60 + $⁢100 + $⁢140) ⋅ 100

($⁢60 + $⁢100 + $⁢140) ⋅ 3

$⁢60 + $⁢100 + $⁢1403

$⁢60 + $⁢100 + $⁢140

If an investor owned 90 shares before the 2-for-1 stock split on Day 3, how many shares would they own after the split?

130 shares

100 shares

180 shares

140 shares

For an investor looking at long-term growth and who does not care about risk, which investment option offers the highest expected annual return?

tech innovators fund

corporate bond fund

market index tracker

health equity fund

An investment fund's returns depend on the performance of a diversified portfolio of stocks and bonds. Is this a fixed investment?

Yes, because it offers high returns.

Yes, because it includes bonds.

No, because the returns are variable and based on market performance.

No, because it has a fixed maturity date.

Which investment option should an investor choose if they have a medium-term investment horizon and are concerned about high tax implications?

real estate investment

municipal bond fund

global equity fund

S&P 500 index fund

You are traveling to Europe and need to exchange your Swiss francs (CHF) for euros (EUR). The current exchange rate is 1 CHF = 0.92 EUR, but the currency exchange service charges a 2% transaction fee. How many Swiss francs do you need to exchange to receive 184 euros after the fee is applied?

200 CHF

204 CHF

208 point 1 6 CHF

198 CHF

If an investor owned 90 shares before the 2-for-1 stock split on Day 3, how many shares would they own after the split?

130 shares

180 shares

140 shares

100 shares

A country's labor force is 50 million, and 3 million of those people are unemployed. What is the unemployment rate if another 2 million people lose their jobs?

10%

12%

Classify the investments as fixed or not fixed.

Answer:

Investment B (10-year Treasury bond),Investment D (5-year certificate of deposit)|Investment A (savings account),Investment C (stock portfolio),Investment E (money market account)

Zissy is visiting Italy from South Africa and wants to buy 1 liter of extra virgin olive oil. The oil is sold in 250 ml bottles, and the price is 8 EUR (euros) per bottle. What is the price of olive oil in ZAR (South African rand) per liter? Currency conversion: 1 EUR = 17 ZAR

136 ZAR per liter

34 ZAR per liter

68 ZAR per liter

544 ZAR per liter

Which segmented bar graph correctly represents the relative frequency of these goods?

Image with description A bar chart titled Basket of Goods. The x-axis is labeled Relative Frequency (percent) from 0 to 100 percent. The blue bar is whole wheat bread, the orange bar is 2 percent milk, the purple bar is fresh vegetables, and the green bar is chicken breast. Whole wheat bread is 0 to 40 percent. 2 percent milk is 40 to 60 percent. Fresh vegetables is 60 to 80 percent. Chicken breast is 80 to 100 percent.

Image with description A bar chart titled Basket of Goods. The x-axis is labeled Relative Frequency (percent) from 0 to 100 percent. The blue bar is whole wheat bread, the orange bar is 2 percent milk, the purple bar is fresh vegetables, and the green bar is chicken breast. Whole wheat bread is 0 to 15 percent. 2 percent milk is 15 to 40 percent. Fresh vegetables is 40 to 75 percent. Chicken breast is 75 to 100 percent.

Image with description A bar chart titled Basket of Goods. The x-axis is labeled Relative Frequency (percent) from 0 to 100 percent. The blue bar is whole wheat bread, the orange bar is 2 percent milk, the purple bar is fresh vegetables, and the green bar is chicken breast. Whole wheat bread is 0 to 25 percent. 2 percent milk is 25 to 50 percent. Fresh vegetables is 50 to 75 percent. Chicken breast is 75 to 100 percent.

Image with description A bar chart titled Basket of Goods. The x-axis is labeled Relative Frequency (percent) from 0 to 100 percent. The blue bar is whole wheat bread, the orange bar is 2 percent milk, the purple bar is fresh vegetables, and the green bar is chicken breast. Whole wheat bread is 0 to 50 percent. 2 percent milk is 50 to 60 percent. Fresh vegetables is 60 to 70 percent. Chicken breast is 70 to 100 percent.

Delaney invests $30,000 in a fixed deposit account that pays no interest over 4 years. During this period, inflation averages 4% per year. What will the present value of the $30,000 investment be at the end of the 4 years? Use this formula to calculate the present value while accounting for inflation: present value=(future value)/((1+annual inflation rate)^number of years)

$25,644.13

$35,095.76

25 dollars comma 000 point 0 0

30 dollars comma 000 point 0 0

Based on the chart, can we conclude that the drop in Company A's stock price caused the drop in Company B's stock price?

Yes, because Company A's price started to drop before Company B's price.

No, because Company B's stock price is independent of Company A's stock price.

Yes, because both companies experienced a similar drop in prices.

No, because correlation does not imply causation, and both companies could have been affected by the same external factor.

Company A has 10 million shares at $100 each. Company B has 5 million shares at $200 each. What is the total market capitalization for these companies?

$1 billion

$3 billion

$4 billion

$2 billion

Considering the maturity periods and risk levels, which investment option should you choose if you prefer to access your funds sooner and why?

Investment A because it has a shorter maturity period and low risk

Investment B because it has a longer maturity period and low risk

Investment B because it offers a higher interest rate

Investment A because it offers higher total returns

Romeo's portfolio: Portfolio composition: 80% in stocks, 20% in bonds Investor goal: Romeo is aiming for an 8% return on his investments. Expected returns: Stocks: 10% Bonds: 3% What is the expected rate of return for Romeo’s portfolio, and does it meet his goal of 8% ?

8 point 6 percent; yes, it exceeds his goal.

0 point 6 percent; no, it does not meet his goal.

8 point 0 percent; yes, it meets his goal.

9 point 0 percent; yes, it exceeds his goal.

What is incorrect about the candlestick for Friday?

The close price is plotted too low.

The candlestick should be red, but it's shown as green.

The open price is plotted too low.

The candlestick should have a shorter lower wick.

$⁢60 + $⁢100 + $⁢140

($⁢60 + $⁢100 + $⁢140) ⋅ 100

($⁢60 + $⁢100 + $⁢140) ⋅ 3