Dave Ramsey - Chapter 8 Investing

Portfolio

• A group of folders

• A list of your investments

• A book

Share

• A piece of ownership in a company, mutual fund or other investment

• A folder

• Risk

Investment

• An account or arrangement in which one would put their money for mid term growth

• An account or arrangement in which one would put their money for short term growth

• An account or arrangement in which one would put their money for long term growth

Risk

• A degree of certainty

• A degree of uncertainty

Liquidity

• The ability of an asset to be converted to cash without the loss of value.

• Water

Mutual Fund

• A pool of money managed by an investment company and invested in multiple companies.

• A pool of money managed by an investment company and invested in a single company

Single stocks and mutual funds carry the same amount of risk

• True

• False

Diversification lowers the risk of investing

• True

• False

Long-term investments properly diversified include the following mutual funds:

• Growth, super risky growth and income, international, and aggressive growth.

• Growth, no growth and income, international, and aggressive growth.

• Growth, growth and income, international, and aggressive growth.

Which of the following is the safest AND best investment option

• Stocks

• Bonds

• Mutual Funds

• Gold