Math of Finance Name:
Unit 4 - Investing
Review
Define the following:
- Stock
- Bond
- Mutual Fund
Place the following Investment types on the Risk Versus Reward Graph:
1. What is the Stock Symbol for Under Armour?
2. How many shares of Under Armour are traded each day on average?
3. How much did Under Armour earn per share this year?
4. How many shares of Under Armour were traded since the market was open this morning?
5. If you bought 10 shares of Under Armour at the lowest price of the year and sold it at the highest price for the year, how much money would you make
Explain the differences or similarities between the following:
1. The fundamental approach and the technical approach to evaluating stock:
2. Keynes Beauty Contest and the Greater Fool Theory:
3. Income Stock and a Growth Stock:
4. Indexed funds and actively managed funds:
5. Alpha and Beta coeffecients:
Explain the following:
1. Diversification:
2. Dollar Cost Averaging:
3. Asset Allocation:
Return on Investment:
1. Calculate your return on investment if you purchased 1,000 shares of stock in Starbuck’s Coffee at $47.50 and sold it at $82.50.
2. What is your return on investment if you invest $5000.00 on January 1st and receive $6,500.00 on June 30th?