Practice Test Answers

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1
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Which candlestick chart accurately represents BioHealth Corp's trading activity for the day?

A
Image with description A box and whisker plot. A red box is from 200 to 205 dollars. The whiskers then extend 215 and 195 dollars.
B
Image with description A box and whisker plot. A green box is from 200 to 205 dollars. The whiskers then extend 215 and 195 dollars.
C
Image with description A box and whisker plot. A green box is from 195 to 205 dollars. The whisker then extends 215 dollars.
D
Image with description A box and whisker plot. A green box is from 200 to 215 dollars. The whisker then extends 195 dollars.
2
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Based on the data, what can be inferred about the relationship between the stock prices of Company X and Company Y?

A
There is a perfect negative correlation between the stock prices of Company X and Company Y.
B
There is no correlation between the stock prices of Company X and Company Y.
C
There is a perfect positive correlation, meaning the increase in Company X's stock price is causing the increase in Company Y's stock price.
D
There is a perfect positive correlation, but this does not necessarily imply that Company X's stock price is causing Company Y's stock price to increase.
4

Classify the investment instruments as fixed or variable based on the characteristics described in the list of investment instruments.

Answer:

fixed annuity,money market accounts,government bonds,corporate bonds|venture capital,commodities,mutual funds,real estate

5

Which investment is a fixed investment?

A
an account with a variable interest rate and no fixed term for withdrawal
B
a fund that invests in a variety of stocks, with returns based on market performance
C
a rental property, with income based on rental agreements
D
an investment that pays a fixed interest rate semiannually and returns the principal at maturity
6

Aya's portfolio includes 200 shares of Stock C and 150 shares of Stock D. Stock C was purchased at $⁢25 per share, and Stock D at $⁢30 per share. Now, Stock C is valued at $⁢28 per share, and Stock D at $⁢27 per share. What is the initial and current value of Aya's portfolio?

A
initial: 11 dollars comma 000; current: 11 dollars comma 100
B
initial: 10 dollars comma 500; current: 11 dollars comma 100
C
initial: 9 dollars comma 500; current: 9 dollars comma 650
D
initial: 9 dollars comma 000; current: 10 dollars comma 050
9

Company A has a stock price of $50 and 10 million shares outstanding, Company B has a stock price of $80 and 5 million shares outstanding, and Company C has a stock price of $120 and 3 million shares outstanding. What is the first step in calculating the market-capitalization-weighted stock index?

A
Multiply each company's stock price by its number of shares outstanding.
B
Divide the sum of the company stock prices by the number of companies.
C
Add the total shares outstanding among the companies and divide the sum by three.
D
Subtract the total number of shares outstanding from the combined stock prices.
14

Which investment provides a higher total return at maturity, and how much is it?

A
Investment A with 26 dollars comma 875
B
Investment A with 26 dollars comma 250
C
Investment B with 27 dollars comma 250
D
Investment B with 26 dollars comma 500

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Practice Test Answers — Mathematics for Data and…