Investment Strategies

What is a robo-advisor?

• a robot that advises you about investments

• an investment tool that automatically does your investing for you

• a digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision

• a type of investment firm

Which of these are NOT a benefit of online trading?

• access to online tools

• option to monitor investments in real time

• more control and flexibility

• easier to invest too much too fast

Which of these is NOT a common investment mistake?

• monitoring investments on a day-to-day basis

• purchasing a diversified stock index fund and holding it for long periods of time

• purchasing a stock based on a tip from a friend

• selling your stocks that have gone up in price and holding onto your stocks that have lost money hoping that they will rebound

Which is the cheapest type of brokerage account?

• money manager

• discount broker with assistance

• full service broker

• discount/online broker

Why should investor's diversify?

• Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance

• Bonds are riskier than stocks so you want to own both

• Bonds typically do best when stocks do best so they make returns even better when they are combined

• Most investors do have a 100% of their money in stocks since bonds are so unpopular

Which of the following is a good investment option?

 

• Gold
• Viaticals
• Mutual funds
•  Futures

  Which statement is true about liquidity?

• The more liquid an investment, the more return 
• The more liquid an investment, the less return
• Liquidity is not related to the amount of return
• The less liquid an investment the less return

Reason that people need to save and invest is to:

• Enable their money to make money
• Increase the money supply
• Be able to get anything they want 
• Have an opportunity to talk with financial service providers

The benefit of diversification in your investments is

• Reduced risk
• Increased risk
• Reduced tax liability

The benefit of diversification in your investments is

• Reduced risk
• Increased risk
• Reduced tax liability