WorksheetsPF - Unit 6: Investing Strategies & Exponential Functions
Total questions: 20
Worksheet time: 10mins
Which of these functions has an asymptote at y = 2? Options: A, B, C, D
A: f(x) = 3
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
Which type of fund is usually passively managed, can be traded throughout the day, and is bought directly from other investors like a stock?
Mutual Fund
Hedge Fund
Exchange-traded fund
Index Fund
How is the portfolio in Alma's target-date fund (TDF) most likely allocated if the planned retirement date is 38 years in the future?
Majority stocks and a small percentage of bonds
Equal allocation between stocks and bonds
Majority bonds and a small percentage of stocks
All cash with no stocks or bonds
Evaluate. Options: 3, 4, 10, 27
3
4
10
27
Each of the following factors impacts how much money you will have available at retirement EXCEPT…
What percent of your income you invest each month
Whether you qualify for Social Security benefits
How old you are when you start investing
How often you log into your online brokerage account
Factors to consider when opening a brokerage account include: Your investing goals, Who will manage the account, Fees that will be charged. What is NOT a factor?
The location of the brokerage company
The type of investments available
The reputation of the brokerage
The minimum deposit required
Analyze the results of the exponential regression model for total assets invested in index funds in the US since 1993. Which statement is true?
A linear regression model would likely have a higher r2 value
The model is not a good fit for the data points because the r2 value is close to 1
The assets managed by index funds have grown by approximately 14.91% per year
The model predicts that US index funds will manage approximately $1.7 trillion in assets in 2023
In 2022, Noah, 24 years old and planning to retire at 67, is choosing a target-date fund at Alpine brokerage. Which fund should they choose?
Alpine Target Retirement 2060 Fund
Alpine Target Retirement 2065 Fund
Alpine Target Retirement 2070 Fund
Alpine Target Retirement 2075 Fund
If you invest money into an index fund that tracks the Dow Jones Industrial Average, you would expect…
Your returns to track the performance of 30 large US companies
Your returns to be higher than the average market return
Your investment to be completely risk-free
Your returns to be influenced by international markets
Which of the following is an example of the bias of Chasing Trends?
Buying a stock when it has hit its lowest price of the year
Buying cryptocurrency because you saw a headline about it reaching its highest price ever
Researching the long term growth strategy of a company
Buying stock in an industry that is not represented in your portfolio to increase diversity
What should Ash do with his $100 per month for retirement accounts: Fund a 401(k) because his employer is offering a match, up to 3% of his salary, Fund a traditional IRA, because it will offer him, by far, the best tax advantages, Fund neither account, because $100 does not meet the minimum requirements for any retirement account type, Fund a savings account, because it will guarantee an interest rate, rather than leaving his retirement up to a risky investment option?
Fund a 401(k) because his employer is offering a match, up to 3% of his salary.
Fund a traditional IRA, because it will offer him, by far, the best tax advantages.
Fund neither account, because $100 does not meet the minimum requirements for any retirement account type.
Fund a savings account, because it will guarantee an interest rate, rather than leaving his retirement up to a risky investment option.
