Investments Quiz

What is the definition of investment?

• the action or process of investing money for profit or material result.

• Something you put your money in for safety.

• Giving yourself something you need to grow

• We didn't discuss investments. Trick question.

What is the relationship between risk and return when discussing investments?

• High risk; high return

  Low risk; low return

• high risk; low return

  low risk; high return

• The two terms are not related.

• The more risk you take the more you are guaranteed a high return.

Your investment goals, time horizon, and risk tolerance are all factors that determine where and what you invest in.

• TRUE

• FALSE

A mutual fund is a pool of money that invests in .....

• Stocks and bonds

• inventions

• Private Businesses

• Real Estate

Reorder the following asset classes from least risky to most risky.

• Government Bonds

• Large company Stocks

• Small Company stocks

• Corporate Bonds

• Cash, checking, savings, money market accoutns

Answer explanation