You Want to Save Money to Buy a New Computer

question 52

Multiple Choice

You want to save money to buy a new computer system. If you deposit $100 a month for a year at an APR of 6% compounded monthly, how much money will you have saved after a year?

• A)$1272.00
• B)$1233.56
• C)$1022.80
• D)$1167.54

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Definitions:

Beta

A measure of a stock's volatility in relation to the market; a beta greater than one suggests greater volatility than the market, while a beta less than one indicates less.

Annualized Return

The geometric average amount of money earned by an investment each year over a given time period, expressed as a percentage.

International Joint Venture

A business arrangement in which two or more parties from different countries form a partnership to share resources, risks, and rewards in pursuing a specific business venture.

Abnormal Return

The difference between the actual return of a security and the expected return based on risk and market performance.