PF - Unit 6: Investing Strategies & Exponential Functions

Which of these functions has an asymptote at y = 2? Options: A, B, C, D

• 
• B: f(x) = 2 + 1/(x-1)

• C: f(x) = 2

• D: f(x) = x^2 - 4

Look at the graph. Which of the four functions has the smallest value for the growth factor "b"?

• Function a

• Function b

• Function c

• Function d

What type of account would be most beneficial for Kendall to use to start saving for retirement, so she can enjoy time off after a stressful career?

• Social Security

• A traditional 401(k)

• A Roth IRA

• A regular brokerage account

Which statement about the investment fees associated with mutual funds is true?

• Fees, compounded over the life of your investment, can substantially decrease your returns

• Investment fees have no impact on overall returns

• Higher fees always guarantee better investment performance

• Mutual funds do not charge any fees

Solve for x.

• x = 2

• x = 4

• x = 6

• x = 8

All of the following are true about robo-advisors, EXCEPT…

• Robo-advisors generally have a higher account minimum than a traditional financial advisor

• Robo-advisors use algorithms to manage investments

• Robo-advisors typically charge lower fees than traditional advisors

• Robo-advisors provide automated portfolio rebalancing

Zora has $5,000 to invest. She wants to create a low-risk, low-volatility portfolio. What is a good strategy for her?

• Lump Sum Investing

• After Tax Averaging

• Dollar-Cost Averaging

• Average Paycheck Investing

The S&P 500 is…

• An index of the 500 largest publicly-traded companies in the US

• A stock market index that includes 100 companies

• A measure of the performance of small-cap stocks

• An index of the 50 largest private companies in the US

Which fund will most working American citizens have access to at retirement?

• A traditional IRA

• A Roth IRA

• A pension plan

• Social Security

Alberto has decided to invest his retirement money into a mutual fund filled with mid-sized US companies. The fund manager is…

• The person who selects which stocks to include in the fund

• A financial advisor who recommends investments

• An accountant who manages the fund's finances

• A lawyer who ensures compliance with regulations