AnswersAdvanced Financial AlgebraInvestment Opportunities

Practice Test Answers

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Which company's stock is more likely to not lose value in the near future, and by how much?

A
Company Y by 2 percent
B
Company X by 1 percent
C
Company X by 2 percent
D
Company Y by 1 percent
3

Which percent is equivalent to the value of w ?

A
71 percent
B
73 percent
C
44 percent
D
27 percent
10

The appraised value of an investment property is $⁢302,580 One investment plan suggests a different plan when an estimated value is greater than 22% above or below the appraised value. Let x be the estimated value at any time in the future. Which absolute value inequality represents the constraints of the plan?

A
|x−302,580<66,567.60|
B
start absolute value x plus 302 comma 580 end absolute value is greater than 66 comma 567 point 6 0
C
start absolute value x minus 302 comma 580 end absolute value is greater than 66 comma 567 point 6 0
D
|x+302,580|<66,567.60
12

Which investment is a fixed investment?

A
a rental property, with income based on rental agreements
B
an investment that pays a fixed interest rate semiannually and returns the principal at maturity
C
a fund that invests in a variety of stocks, with returns based on market performance
D
an account with a variable interest rate and no fixed term for withdrawal
16

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: 9 dollars comma 500; current: 9 dollars comma 650
C
initial: 10 dollars comma 500; current: 11 dollars comma 100
D
initial: 9 dollars comma 000; current: 10 dollars comma 050
17

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
Add the total shares outstanding among the companies and divide the sum by three.
B
Divide the sum of the company stock prices by the number of companies.
C
Multiply each company's stock price by its number of shares outstanding.
D
Subtract the total number of shares outstanding from the combined stock prices.
19

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

A
Investment A with 26 dollars comma 250
B
Investment B with 26 dollars comma 500
C
Investment A with 26 dollars comma 875
D
Investment B with 27 dollars comma 250
20

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

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