Unit 6 Test: Investing Strategies & Exponential Functions - Jennifer Pariseau | Library

Instructions

Part 1:  Multiple Choice 

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The S&P 500 is…

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

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

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All of the following are factors to consider when opening a brokerage account EXCEPT

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Alma recently started investing in a target-date fund with a planned retirement date that is 38 years in the future. How is the portfolio in her TDF most likely allocated?

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

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If you invest money into an index fund that tracks the Dow Jones Industrial Average, you would expect…

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

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Which type of fund is usually passively managed, can be traded throughout the day, and is bought directly from other investors like a stock?

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In 2022, Noah decided to start investing in a target-date fund at Alpine brokerage. They are 24 years old, have been working for 5 years, and are planning on retiring at 67. Which target-date fund should they choose?

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Zora has $5,000 to invest. When assessing her goals, she decides that she wants to create a low-risk, low-volatility portfolio. Based on this assessment, a good strategy for Zora would be:

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Ash remembers learning about both 401(k)s and IRAs in his personal finance class during high school. He’s early in his career, and he can really only afford to fund one type of account with about $100 per month right now. What should he do?

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Which of the following is an example of the bias of Chasing Trends?

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Each of the following factors impacts how much money you will have available at retirement EXCEPT…

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Kendall completed her med school training 10 years ago and is now a successful highly-paid surgeon at a major hospital. 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?

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Evaluate:

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

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Which of these functions has an asymptote at y = 2?

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The data points represent a fund’s prices over time. Based on the exponential regression model…
a. Write the equation for the fund’s predicted price after x years. Round to the nearest hundredth.
b. Based on the model, predict the fund’s approximate price after 6 years. Show your work or explain your reasoning.

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Is this model a good fit for the data? Why or why not?

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Antonina goes on Wheel of Fortune and wins $12,000 after taxes. She decides that she will invest this money with the goal of putting a $20,400 down payment on a house. She puts the money in a mutual fund that has had a historical return of 7.5%.
a. Write an exponential equation that represents Antonina’s investment where x represents years and f(x) represents her investment after x years. Assume the mutual fund earns a 7.5 annual rate of return.
b. Calculate how long it will take to reach her investment goal. Round to 2 decimal places.