Finance Unbox-ED ($) - Grade 6-8 - Session 020 - Quiz 1

Student Name

Select the statement that is true

• ROI - Inflation = Real Rate of Return
• IRR - Inflation = Real Rate of Return
• Both of the above
• None of the above

Select the statement that is true

• Real rate of return can be positive or negative
• Negative real rate of return means your money is losing in value every year
• Both of the above
• None of the above

IRR on our investment should be lower than inflation for us to get positive real rate rate of return

• True
• False

MOIC stands for?

• Money on Invested Capital
• Multiple on Internal Capital
• Money on Internal Capital
• Multiple on Invested Capital

Adam invested $1,000 in shares of ABC Inc. and sold them after three years for $1,300

• Adam made a MOIC of 0.3x
• Adam made a MOIC of 1.3x
• Adam made a MOIC of 2.3x
• None of the above