1. What is the perceived benefit of diversification within asset classes?
2. Which formula represents the calculation of Future Value (FV)?
3. Private Investor A (PIA) invests $5,000 in StartupX. Three years later, StartupX is acquired and PIA receives $25,000 (5x return). PIA’s long-term capital gain on the sale is
4. How is the simple rate of return calculated?
5. If a Private Investor A (PIA) made a $200 investment in Startup X and, upon Startup X’s acquisition, $4500 was returned to PIA, the rate of return would be
6. How can a self-directed individual retirement account (SDIRA) benefit investors with regards to tax?
7. Which of the following is NOT considered a risk mitigation strategy for sophisticated investors?
8. What does it mean to diversify "across asset classes"?
9. Why is a unit of currency today considered to be worth more than the same unit in the future, according to the Time Value of Money principle?
10. Which of the following is a restriction associated with a self-directed IRA?
11. Which of the following is a potential benefit of experiencing losses on your investments?
12. Private Investor A (PIA) is contemplating a $100 investment in Startup X. Given the high risks associated with the deal, PIA is modeling a 50% compounded annual return on the investment over a 7-year period at which point she projects that Startup X will be acquired. Based on these assumptions, the future value of PIA’s investment is estimated to be
13. What is the capital gains tax applicable to?
14. What is the average return over a 10-year period in the public markets (S&P 500)?
The time limit has expired and your responses have been submitted.