Investing Review

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

Using the Rule of 72, how long would it take an investment to double with a 4% rate of return?

Back

18 years

Front

If interest rates rise, what will typically happen to bond prices?

Back

Fall

Front

How does investing in the stock market differ from putting money in a savings account at a bank?

Back

Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies.

Front

What rate of return should you search for if you want your investment to double in 12 years?

Back

6%

Front

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

Back

30%

Front

Which of the following accurately describes a difference between an individual bond compared to a bond fund? A bond pays you dividends while a bond fund pays you regular interest, A bond guarantees you a higher rate of return than a bond fund, A bond is issued by a company while bond funds only invest in government bonds, A bond is considered to be a less diversified investment than a bond fund.

Back

A bond is considered to be a less diversified investment than a bond fund.

Front

A diversified portfolio is desirable because

Back

It decreases risk