Risk vs. Reward

If you are investing money that you will need in the next few years, it is best to choose a risky investment.

• True

• False

A company says it believes its stock will triple in value in the next 6 months.

A stock with very high expected returns like this is probably ...

(a)  

• High Risk
• Low Risk

Buying lots of stock in a company that has been doing well is not at all risky.

• True

• False

Investments that are super safe are likely to have​ (a)   returns.

• low
• high
• the best

The trend of growth in the overall stock market over the last 20 years has been...

• Ups and downs, but overall growth over time

• Growing every year

• Ups and downs, but overall losing value over time

• Losing value every year

Where do investments like cryptocurrency fall in the range of risk?

• High risk

• Medium risk

• Low risk

• No risk

For a very low risk investment, what causes hidden risk?

• Inflation

• Taxes

• stock market

How can I buy stocks in a way that keeps my risk lower?

• Buy LOTS of stocks in different companies

• Choose a good company

• Ask an expert to choose a good stock for you

• Pick one at random and hope for the best

What is the word for investing in lots of different types of stocks, bonds, etc?

• Diversification

• Paying yourself first

• Budgeting

• power investing

What can a graph of the price of stock of a company over the past 5 years tell you?

• What happened in the past 5 years.

• What will happen in the next 2 years.

• Both of these