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?

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)