Investments

Investments

I need help for 31 days. I will pay you a penny the 1st day and then double your wage everyday. WHO'S INTERESTED? HOW MUCH WOULD YOU MAKE?

• Day 1 $.01

• Day 2 $.02

• Day 3 $.04

• Day 4 $.08

Open Ended

How much do you think you will make at the end of 31 days?

Open Ended

What is compound interest?

Multiple Choice

What is Risk & Reward ratio?

• The higher the risk the higher the reward.

• The higher the risk the lower the reward.

• The lower the risk the higher the reward.

Multiple Choice

Fifty year old people should have a high risk tolerance?

• Yes

• No

Multiple Choice

Why should your investments be diversified?

• To grow your investment faster.

• To increase be fair to everyone.

• To reduce the risk of losing all your money.

• To reduce your reward in one investment.

Open Ended

What is an investment portfolio?

Open Ended

What does it mean if an investment is liquid?

Multiple Select

Check all that are true about a money market.

• Low risk

• Writing check privileges

• High return

• Great for emergency fund

• Liquid

Multiple Select

A bond is...

• Ownership in a buisness

• Debt for the investor

• Debt for the govt or corporation issuing them

• Great investment during inflation increase

Multiple Choice

How do you make money on a bond?

• Buy low sell high

• Receive interest payments during term

Multiple Choice

A mutual fund is...

• A certificate of deposit

• A savings account sold by an insurance company

• A debt instrument used to raise money for corporations and government

• Many investors pooling their money together in variety pack of investments

Open Ended

What are the advantages of a Mutual Funds?

Multiple Choice

Who manages a mutual fund?

• The investor (you)

• A professional

Multiple Choice

What is a single stock?

• A debt instrument for govt or corp.

• A small piece of ownership in a company.

• A high return, low risk investment

• A pool of people investing their money in a variety pack of investments.

Open Ended

What is a dividend?

Multiple Choice

What is the biggest disadvantages of a real estate investment?

• liquid; hard to decide which to buy

• Need lots of experience

• Low risk, low return

• You need lots of cash; illiquid

Multiple Choice

Commodities are...

• low risk, low return

• High risk because you invest with speculation and futures

• A debt instrument for government or corporations.

• Only agricultural product investments; high risk