Investing Quiz

What is the main reason a company issues stocks

• help investors earn a higher rate of return

• raise money to grow the company

• distribute the risk of bankruptcy across more investors

• increase awareness of the company

A diversified portfolio is desirable because?

• indicates an investor is a good predictor of the return an investment will have

• decreases risk by investing money in a variety of investment tools

• increases the risk/return ratio

stock analysts use this term for a market that is doing poorly

• rooster

• bear

• bull

• sheep

Relationship between risk and return in investing can be stated as:

• higher the risk indicates lower potential return

• higher risk indicates higher potential return

• lower risk indicates higher potential return

A mutual fund is?

• option to purchase something in the future at today price

• share of ownership in the governement

• collection of investments sold as a package

stock analysts use this term for a market that is doing good and is on the rise

• rooster

• bear

• bull

• sheep

Which of the following is not a type of bond?

• Government

• Corporate

• Stock

• Municipal

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

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

• 2%

• 3%

• 30%

• 70%

A diversified portfolio is desirable because

• It limits investment choice

• It's a good predictor on rate of return

• It increases risk and return

• It decreases risk