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WorksheetsAssignment
Total questions: 6
Worksheet time: 6mins
Name
Class
Date
1.
Technical analysis is useful ______________
a)
for baking a cake
b)
for learning a new language
c)
for predicting future price movements in the financial markets.
d)
for fixing a car
2.
Why is compound interest more advantageous than simple interest?
a)
It’s more difficult to calculate, so fewer people use compound interest, making more profits for those who do.
b)
Compound interest accumulates very rapidly, so you only have to save for 3 years or fewer to earn far more money.
c)
Compound interest is attached to the stocks with the highest risk, so you get the highest interest on them
d)
In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.
3.
Rule of 72: How many years to double my money if I get a 9% return on investment?
a)
8 years
b)
7.2 year
c)
7 years
d)
9 years
4.
When you buy a stock, you are buying a small piece of _______ in a company.
a)
debt
b)
ownership
c)
risk
5.
What is the Rule of 114 in finance?
a)
To calculate the number of years to triple your money at a given interest rate
b)
To calculate the number of years to quadruple your money at a given interest rate
c)
To calculate the number of years to double your money at a given interest rate
d)
To calculate the number of years to halve your money at a given interest rate
6.
What is the significance of the Dow Theory in stock market analysis?
a)
It is used to predict the movement of individual stocks
b)
It is used to analyze the overall market trend
c)
It is used to calculate the dividend yield of stocks
d)
It is used to determine the price-earnings ratio of stocks
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