A Financial Advisor Has Recommended Three High-Risk High-Yield Investments and Four

question 258

Multiple Choice

A financial advisor has recommended three high-risk high-yield investments and four low-risk low-yield investments to one of her clients. In how many ways can the client select one of each type of investment for his portfolio?

• A) 12
• B) 7
• C) 81
• D) 64

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Definitions:

Publicly Traded

Refers to companies or securities that are available for buying and selling on the public stock exchanges.

Time-weighting Factor

A calculation used to adjust the influence of specific data points in an averaging or forecasting method based on their occurrence in time.

Ordinary Shares

Shares of a company that entitle the holder to dividends as declared and give them voting rights in company meetings.

Discontinued Operation

A component of a company's business that has been sold or discontinued, with its results reported separately in the financial statements.