Quiz 5 Fin 3000
% of salary you should save for retirement
10
default plan for federal student loans
10 years
% of americans who could pass financial literacy test
37
liable to $__ if credit card stolen
50
college grad salaries are ___% more than non college grads
56
federal student loans deferred for ___ months
6
% of students that feel financially stressed
80
The return earned in an average year over a multiyear period is called the _____ average return.
Arithmetic
You own a stock that you think will produce a return of 11 percent in a good economy and 3 percent in a poor economy. Given the probabilities of each state of the economy occurring, you anticipate that your stock will earn 6.5 percent next year. Which one of the following terms applies to this 6.5 percent?
Expected return
The average compound return earned per year over a multiyear period is called the _____ average return.
Geometric
As long as the inflation rate is positive, the real rate of return on a security will be ____ the nominal rate of return.
Less than.
Which one of the following correctly describes the dividend yield?
Next year's annual dividend divided by today's stock price.
Suzie owns five different bonds valued at $36,000 and twelve different stocks valued at $82,500 total. Which one of the following terms most applies to Suzie's investments?
Portfolio
The principle of diversification tells us that:
Spreading an investment across many diverse assets will eliminate some of the total risk
Which one of the following best defines the variance of an investment's annual returns over a number of years?
The average squared difference between the actual returns and the arithmetic average return.`
A news flash just appeared that caused about a dozen stocks to suddenly drop in value by 20 percent. What type of risk does this news flash best represent?
Unsystematic
Standard deviation is a measure of which one of the following?
Volatility
The geometric average return answers the question,
What was your average compounded return per year over a particular period?
mint
budgeting app
The arithmetic average tells you what you actually earned per year on average, whereas the geometric average tells you what you earned in a typical year.
false
free credit score website
freecreditkarma
acorn app
invests spare change into the stock market
According to the video, short-run projected wealth levels calculated using geometric averages are probably ______________
pessimistic
Expected return is the return on a _______ asset expected in the future.
risky