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Cogito

Consumer Math · Chapter 8 · Lesson 1

Practice Worksheet

Stocks, Bonds, and Funds

What you actually own.

12 problems · about 21 minutes · TEKS M.M.8.A

NameDate

Figure — use these to answer the problems

Typical long-run returns and how much each swings. Higher bars come with rougher rides.
Savings2
Bonds4
Stocks8
Savings return percent2
Bond return percent4
Stock return percent8
Figure 1

Warm Up

Straightforward practice. Get the method working first.

5 problems

  1. A 1% annual fee on $100000. Fee in dollars?

    Answer

  2. What does diversification do?

    • Spreads money across holdings so no single failure is fatal.
    • Guarantees a profit.

  3. Which represents ownership? 1 stock, 2 bond.

    Answer

  4. A 0.05% fee on $200000. Fee in dollars?

    Answer

  5. A 1% fee on $50000. Fee in dollars?

    Answer

Build It Up

The same ideas with more to keep track of.

3 problems

  1. Which usually returns more over decades? 1 bonds, 2 stocks.

    Answer

  2. Which usually swings less year to year? 1 bonds, 2 stocks.

    Answer

  3. Can a legitimate investment offer high return with no risk? 1 yes, 0 no.

    Answer

Stretch Yourself

Mixed problems. Work out what kind of question it is before you start.

4 problems

  1. Match each investment with what it is.

    Draw a line from each item on the left to its match on the right.

    • Stock
    • Bond
    • Fund
    • A share of ownership in a company
    • A loan repaid with interest
    • A basket of many holdings at once

  2. A 0.5% fee on $80000. Fee in dollars?

    Answer

  3. The Fee

    A 1% annual fee on a $200000 balance. Fee for the year, in dollars?

    Answerdollars

  4. The Loan

    Which is a loan to a company rather than ownership of it? 1 stock, 2 bond.

    Answer