click below
click below
Normal Size Small Size show me how
Investment Unit
5 number summary
Term | Definition |
---|---|
Box and Whisker Plot | Displays the five-number summary of a set of data. |
5 number summary | minimum, first quartile, median, third quartile, and maximum |
Stocks | A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company |
Bonds | A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date |
Mutual Funds | A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor. Can only be traded once a day when market closes. |
Index Funds | A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks. |
ETFs | A basket of securities that trade on an exchange, just like a stock. They can be bought and sold all day. |
Interquartile Range | The IQR is defined as the difference between the third quartile value and the first quartile value. |
Center | Middle of the data, usually measured by median or the mean. |
Variation | How spread out the data is, can be measured by Range, IQR, and Standard Deviation. |
Risk | Degree of uncertainty on how likely the investor is to make money on an investment |
Certificate of Deposit (CDs) | A savings certificate with a fixed interest rate and maturity date, holding the saver's money until the CD fully matures |