## Investing Data Crunch

### MATH: Rule(72)

In this activity, students will be able to:

• Use function notation
• Calculate how long it will take an investment to double using the rule of 72

Source: NGPF

### MATH: Return on Investment

In this activity, students will be able to:

• Calculate return on investment (percent growth) using order of operations.

Source: NGPF

### MATH: Active vs Passive Funds

In this activity, students will be able to:

• Use percentages to calculate an investment’s annual growth.
• Apply the compound interest formula to calculate the growth of investments over multiple years.
• Analyze how investment fees impact long-term returns.

Source: NGPF

### MATH: Exponential Growth in Investments

In this activity, students will be able to:

• Write and solve exponential equation about investment growth over time.

Source: NGPF

### MATH: Standard Deviation in Stock and Bonds

In this activity, students will be able to:

• Calculate standard deviation from a data set
• Use standard deviation to compare the risk of investing in stocks and bonds.

Source: NGPF

### MATH: Rule of 110 and Function Composition

In this activity, students will be able to:

• Use function composition
• Determine what percentage of an investor’s portfolio should be invested in stock based on their age

Source: NGPF

### MATH: Using Regression to Analyze Stocks

In this activity, students will be able to:

• Use a calculator to find the line-of-best fit for a data set.
• Analyze the key values in a linear regression, including the slope, y-intercept, and r-squared value.
• Use linear regression to analyze and compare short-term stock returns.

Source: NGPF

### MATH: Yield to Maturity

In this activity, students will be able to:

• Solve multi-step equations using order of operations.
• Apply the formula for yield to maturity to find the rate of return, coupon rate, face value, price, or years to maturity for a bond.

Source: NGPF

### DATA CRUNCH: Are Stocks a Risky Long-Term Investment?

In this activity, students will be able to:

• Use a chart of historical stock market returns to analyze the risk of investing over different time horizons.

Source: Wisdom Tree Asset Management

In this activity, students will be able to:

• Compare the best, worst, and average annual returns over a 20 year period for portfolios with a different allocations of stocks and bonds.
• Consider the risks and returns of investing in stocks and bonds.

Source: Vanguard

### DATA CRUNCH: How Successful Is the Average Investor?

In this activity, students will be able to:

• Analyze a bar chart of the historical returns of different asset classes
• Compare the average investor’s returns to the S&P 500 and other investment options.

Source: JP Morgan

### DATA CRUNCH: What Have Stock Market Returns Been Over the Past Ninety Years?

In this activity, students will be able to:

• Analyze a historgram of stock market returns over 90 years.

Source: Slickcharts

### DATA CRUNCH: What’s Been The Best Investment Since 1926?

In this activity, students will be able to:

• Analyze the annual returns of small stocks, large stocks, government bonds and treasury bills over 90 years, compared to inflation.
• Interpret the potential risk of an investment type based on the graph of its long-term returns.

Source: Ibbotson Associates