26
QuizMultiple Choice

Investments — Test

Question 26 • Financial Math

An investment fund's returns depend on the performance of a diversified portfolio of stocks and bonds. Is this a fixed investment?

Answer
A
Yes, because it offers high returns.
B
Yes, because it includes bonds.
C
No, because the returns are variable and based on market performance.
D
No, because it has a fixed maturity date.

Explanation

A fixed investment provides returns that are set or predictable under its terms. Here, the fund’s returns depend on how its stock and bond portfolio performs, so they can change with market conditions. Therefore, it is not a fixed investment; choice B correctly identifies that its returns are variable and market-based.

AI-written and checked against the verified answer.

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