Financial Instrument Flashcard

Front

What does 'risk' refer to in investment terms?

Back

The chance of losing money

Front

Which investment type is associated with low risk and stable returns? Options: Stocks, Cryptocurrencies, Real estate, Savings accounts

Back

Savings accounts

Front

What is the primary focus of growth investing?

Back

Investing in stocks expected to grow rapidly

Front

What is a key characteristic of active investing?

Back

Hands-on strategy with frequent trading

Front

Which of the following is a focus of dividend investing? Stocks that pay regular dividends, Stocks with high growth potential, Bonds with fixed interest, Cryptocurrencies

Back

Stocks that pay regular dividends

Front

What does the Sharpe Ratio evaluate?

Back

Risk-adjusted returns

Front

What is the main idea behind value investing?

Back

Buy undervalued stocks and wait for price increase

Front

What is a characteristic of passive investing?

Back

A buy and hold approach

Front

What is the purpose of evaluating portfolio performance through key metrics?

Back

To ensure continued growth and risk management

Front

What is emphasized for achieving financial stability? Options: High-risk investments, Short-term gains, Long-term consistency, Frequent trading

Back

Long-term consistency