BM P4 TEST Part 2 Open Ended questions (100pts)

1)       What are the similarities and differences between asset allocation and diversification?

2)       What is a Brokerage?

3)       What is portfolio rebalancing?

4)       What is the recommended formula to use to balance your portfolio between stocks and mutual funds?

5)       The 3 steps to growing rich through a lifetime of savings and prudent investing decisions are:

6)       What are the purpose of checking accounts and saving accounts? How does a bank use your saving account and checking accounts?

7)       What is the difference between liquidity and volatile?

8)       What are dividends? When are they pay? Who pay dividends? Why?

9)       What are the difference between stocks, bonds and commodities?

10)   List 3 examples of commodities.