Savings and Investment Strategies Part 2

According to this graphic, what's the price of one share of Nike stock?

• $129.30

• $1.97

• $1.55

• $131.27

Which statement is true?

• Bonds have no risk.

• Stocks have no risk.

• Stocks are more risky than bonds.

• Bonds are more risky than stocks.

Which is a diversified investment?

• A savings account

• An individual stock

• An index fund

• A bond

Which investor would want an aggressive risk level?

• Stanton who is 82 years old and is retired.

• Jill who is 43 years old and makes $50,000 a year as a teacher.

• Brandon who is 26 years old, has been investing for 6 years, and makes $100,000 a year.

Which TWO statements are true about diversification?

• Diversification increases risk.

• Diversification decreases risk.

• Diversification means putting your money in one investment.

• Diversification means putting your money in various investments.

What type of market is described by increasing stock prices?

• Bull

• Bear

What is a stock?

• A share of a company

• A loan to a company or government

• A special kind of savings account

What's true about saving vs. investing?

• Saving is for long-term goals while investing is for short-term goals.

• Investing guarantees you your money but saving is more risky

• Investing involves stocks, bonds, and index funds but saving involves CDs and money market accounts