60
QuizMultiple Choice

Investments — Test

Question 60 • 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
No, because the returns are variable and based on market performance.
B
Yes, because it includes bonds.
C
No, because it has a fixed maturity date.
D
Yes, because it offers high returns.

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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