Section 1

Question 1

An investor invest $5,000 eac in 3 different stocks: A, B, and C. The investor holds each stock for 1 year. Stock A increses to $6,000 in value and pays $400 in dividends. Stock B decreases in value to $4,600 and pays no dividends. Stock C increases in value to $5,500 and pays $300 in dividends. Whati the total return?

Answer 1

12%.

The total return of an investment is (money made - money lost / money invested.

For stock A, the investor made $1,000 on the stock increase and $400 in dividend. For stock B, the investor loses $400. For stock C, the investor makes $500 on the stock increase and $300 in dividends.

Money Lost = $400
= $1800

$1800 / $15000 (money invested)
= 12%

Question 2

in the following series of numbers: 15, 14, 16, 17, 14, what is the median?

Answer 2

Answer: 15

14
14
15
16
17
Explanation: The meian is the middle number of a series of numbers. Since there are 5 numbers in this example, exclude the top 2 numbers and bottom 2 numbers and see what is in the middle. the 2 lowest numbers are both 14 while the 2 highest numbers are 16 and 17. There for, the numer in the middle is 15.