The Stack Plot Below Shows the Value of Each of Danny's

question 208

Multiple Choice

The stack plot below shows the value of each of Danny's investments. The stack plot contains three regions. Theuppermost unshaded region represents the value of Danny's investment in individual stocks. The center shaded regionrepresents the value of Danny's investment in mutual funds and the bottom region in black represents the value ofDanny's investment in a CD. The thickness of a region at a particular time tells you its value at that time. Use the graph to answer the question.
-In which year was the value of Danny's investment in individual stocks the least?

• A)year 1
• B)year 8
• C)year 7
• D)year 0

---

Definitions:

Market Value

The current quoted price at which an asset or a service can be bought or sold.

Intrinsic Value

The inherent worth of an asset, not necessarily its market price, often calculated through fundamental analysis.

Financial Markets

Marketplaces where individuals and institutions can trade financial securities, commodities, and other fungible items of value at low transaction costs.

Marginal Investor

A marginal investor is a representative investor whose actions reflect the overall market sentiment and whose transactions can affect a security's price.