Investment Learning Objectives

Front

Why is it important to diversify your investment portfolio?

Back

It reduces risk

Front

What is a 'Bear market'?

Back

A market with falling prices.

Front

Which of the following represents an investment? A bag of money, A house, A stock certificate, All of the above.

Back

All of the above.

Front

Fill in the blank: The principle of risk-return tradeoff is crucial for ______.

Back

Making informed investment decisions

Front

In the simple interest formula, what does 'Rate' refer to?

Back

Interest Rate (%)

Front

Which component of the simple interest formula represents the duration of the loan/investment?

Back

Time

Front

Fill in the blank: The time period used in the simple interest calculation is ____.

Back

1 year

Front

Which of the following best describes the difference between simple and compound interest? A) Simple interest is calculated on the initial principal only, while compound interest is calculated on the initial principal and accumulated interest, B) Both are calculated on the initial principal only, C) Both are calculated on the accumulated interest only, D) None of the above.

Back

Simple interest is calculated on the initial principal only, while compound interest is calculated on the initial principal and accumulated interest.

Front

The best time to starting to build wealth is at a(n) ______ age.

Back

Young

Front

Who is quoted as saying that compound interest was the most powerful force on Earth?

Back

Albert Einstein