Investing: Mayer

Front

A diversified portfolio is desirable because

Back

It decreases risk

Front

You bought 10 shares of stock in StreamingVideoCo for $40 per share. Three months later you sold the ten shares of stock for $100 per share. What was your profit or loss on StreamingVideoCo stock?

Back

Gain of $600

Front

Investing in a diversified portfolio of stocks guarantees that you won't lose money with your investments.

Back

False

Front

Which investment vehicle represents an ownership in a company?

Back

Stock

Front

Why shouldn't Sarah invest her $1200 in stock for her vacation?

Back

Investing in one company's stock is quite risky, investing your whole savings in the stock market is a poor financial decision, and one year probably isn't enough time for one stock to turn $1200 into a month's vacation.

Front

Which of the following investment types are the least risky? savings account, treasury bonds, real estate, stocks

Back

savings account

Front

Which type of investment typically carries the largest risk? Options: individual stocks, treasury bonds, savings accounts, mutual funds

Back

individual stocks

Front

________________________ are a mix of different stocks (and maybe bonds too).

Back

Mutual Funds

Front

Which of the following statements about bonds is TRUE? A bond represents a share of ownership in a company. When a bond matures, you get the full amount you loaned back with interest. Bonds pay out annual dividends. Bonds are considered relatively risky compared to stocks.

Back

When a bond matures, you get the full amount you loaned back with interest.

Front

The difference between APY and APR is:

Back

APY is money you earn in interest on an account, while APR is money you have to pay on a loan.