Brusco Investing Flashcard

Front

A key difference between saving and investing is:

Back

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

Front

Which would usually be considered the highest risk investment type? Individual Company Stock, Mutual Fund, Treasury Bond, Money Market Account

Back

Individual Company Stock

Front

The relationship between risk and return can be stated as:

Back

Higher risk indicates higher return

Front

Which is NOT a stock market index? Options: Dow Jones Industrial Average, S&P 500, Nasdaq 100

Back

New York Stock Exchange

Front

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

Back

Fall

Front

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

Back

30%

Front

A diversified portfolio is desirable because

Back

It decreases overall risk.

Front

Which of the following accurately describes asset allocation?
Options:
Well-balanced portfolio of different stock classifications
Dividing among different asset categories based on risk
Dividing among different asset categories based on time
Chance your investment won't be worth as much in the future

Back

Dividing among different asset categories based on risk

Front

Putting regular amounts of money into an investment account at specific time intervals is

Back

Dollar cost averaging

Front

Which is NOT a good reason to buy a stock fund like the S&P 500? Have a diversified portfolio, Have an investment with low fees, Don't have to monitor as closely as active managed account, You want to "beat the market" with your ROI

Back

You want to "beat the market" with your ROI