[Synchronous] Activity 1

• ____shows how much profit you make from an investment.

• Risk

• Return on investment

• Portfolio

• Dividend

• It is the chance that you might lose some or all of your money.

• Liquidity

• Asset Allocation

• Diversification

• Risk

What does Return on Investment (ROI) measure?

• The total amount of money invested
  
  

• The risk of an investment

• The profit made from an investment
  

• The diversity of investments

If you invest PHP2,000 in a stock and later sell it for PHP2,500, what is your ROI?

• 20%

• 25%

• 50%

• 75%

Which investment strategy involves spreading your money across various types of assets to reduce risk?

• Asset Allocation
  

• Risk Management

• Diversification

• Liquidity Management

What is meant by 'Liquidity' in investing?

• The total value of your investment portfolio
  

• The risk associated with an investment

• How easily you can convert an investment into cash without losing value

• The amount of profit you earn from an investment

Define a 'Bull Market.'

• A period when asset prices are falling

• A period when asset prices are rising

• A period of high investment risk

• A period of low investment risk

In the context of investing, what does 'Asset Allocation' involve?

• Deciding how to spread your money among different types of investments
  

• Measuring the risk associated with an investment

• Calculating the ROI of an investment

• Spreading investments across different sectors

What interaction is observed between Asset Allocation and Risk Management?

• Asset Allocation determines how much risk you are willing to take
  

• Risk Management focuses only on stocks

• Asset Allocation and Risk Management are unrelated

• Asset Allocation is used to avoid diversification

How does diversification help manage investment risk?

• It increases the potential return of investments
  

• It concentrates investments in a single asset class

• It reduces the risk by spreading investments across different assets

• It eliminates all risks associated with investments