Investing Review

You are a new employee at your first full time job and you have no debt. Your employer offers a 401k match where if you contribute to your retirement, they will match a percentage (they will contribute some money to your retirement). If retirement is important to you, should you contribute to your 401k now?

• Yes

• No

Why is diversification a recommended investment strategy?

• Investing in a diversified portfolio guarantees that you won’t lose money with your investments

• If you tell your fund manager to use diversification, they’ll charge you lower fees

• Diversifying your portfolio helps reduce risk

• If you diversify your portfolio, you will definitely earn a high return

An actively managed mutual fund…

• Generally has lower fees than an index fund

• Generally has higher fees than an index fund

• Always generates greater returns than index funds

• Never generates greater returns than index funds

Investing in cryptocurrency is generally seen as being _____ risky than traditional investments like bonds and funds.

• More

• Less

Imagine you buy stock in Apple. What is 1 factor that could make your stock go up, and one factor that could make it go down?

Evaluate responses using AI:

OFF

Over the last 50 years the average investment in the stock market grows about how much?

• 4% - 7%

• 7% - 10%

• 10% - 12%

• 12% - 15%

Draw something that represents a fund (index fund, mutual fund, ETF)

This is a type of investment you can purchase that represents ownership of a part of a corporation. Units of this are called "shares."

• Bond

• Stock

• Dividend Stock

• Index Fund

  Mutual Fund

• Exchange Traded Fund (ETF)

This is a type of investment you can purchase that represents part ownership of a corporation, and you get interest payments while you own it. Units of this are called "shares."

• Bond

• Stock

• Dividend Stock

• Index Fund

  Mutual Fund

• Exchange Traded Fund (ETF)

This is a type of investment that acts like a loan. For example, you pay $1000 to buy one, you get $50 a year (like a dividend) until it reaches maturity (agreed upon length of borrowing time), then get your $1000 back.

• Bond

• Stock

• Dividend Stock

• Index Fund

  Mutual Fund

• Exchange Traded Fund (ETF)