AnswersMathematics for Data and Financial LiteracyInvestments

Investments — Test Answers

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61
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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)

62
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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?

A
$1 billion
B
$2 billion
C
$4 billion
D
$3 billion
63

What is the CPI for the entire basket in 2024, using 2010 as the base year? Consumer price index formula: CPI=((cost of market basket in current year)/(cost of market basket in base year))⋅100

A
140
B
120
C
130
D
132
64

What is a significant risk associated with variable investments?

A
fixed interest rates
B
no guaranteed return of principal
C
guaranteed returns
D
fixed principal amount
65

Place the steps in the correct order to calculate the CPI for the entire basket.

Answer not available
66

Blake buys 40 shares of a stock priced at $⁢50 per share and makes 5 trades. The brokerage charges a transaction fee of $⁢10 per trade. What is the total transaction fee Blake must pay?

A
50 dollars
B
200 dollars
C
250 dollars
D
100 dollars
67

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

A
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.
B
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.
C
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.
D
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.
68

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

A
136 ZAR per liter
B
544 ZAR per liter
C
34 ZAR per liter
D
68 ZAR per liter
69

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

A
Investment B because it offers a higher interest rate
B
Investment A because it offers higher total returns
C
Investment B because it has a longer maturity period and low risk
D
Investment A because it has a shorter maturity period and low risk
70

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

71

Question text not available

Answer:

recovery

72

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% ?

A
8 point 0 percent; yes, it meets his goal.
B
0 point 6 percent; no, it does not meet his goal.
C
9 point 0 percent; yes, it exceeds his goal.
D
8 point 6 percent; yes, it exceeds his goal.
73

What is incorrect about the candlestick for Friday?

A
The open price is plotted too low.
B
The candlestick should be red, but it's shown as green.
C
The close price is plotted too low.
D
The candlestick should have a shorter lower wick.
74

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?

A
10%
B
12%
C
6%
D
8%

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