Investing

What is the main appeal of an index fund?

• Son inversiones típicamente de bajo costo y diversificadas.

• Son inversiones de alto riesgo y alta rentabilidad.

• Son inversiones que requieren un manejo activo constante.

• Son inversiones que solo se centran en acciones de tecnología.

What is Social Security?

• A government-managed retirement program

• A private investment plan

• A health insurance policy

• A tax refund system

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

The relationship between risk and return can be stated as

• Un menor riesgo indica un menor retorno

• Un mayor riesgo indica un mayor retorno

• El riesgo no afecta el retorno

• El retorno es siempre constante independientemente del riesgo

A diversified portfolio is desirable because

• Disminuye el riesgo

• Aumenta la volatilidad

• Reduce el rendimiento

• Limita las oportunidades de inversión

If interest rates rise, what will typically happen to bond prices?

• Increase

• Stay the same

• Caer

• Decrease

If Jonathan is earning 2% on an investment and inflation is increasing by 3%, what is happening to his purchasing power?

• Está aumentando

• Está estancado

• Está disminuyendo

• Está fluctuando

Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?

• Ganancia de $25

• Pérdida de $5

• Ganancia de $10

• Ganancia de $15

Why is it important to start investing as soon as possible?

• Tienes más tiempo para que tu dinero se acumule

• Es más fácil perder dinero si esperas

• No hay beneficios al invertir temprano

• Puedes invertir menos dinero si comienzas tarde

Which is NOT a good reason to buy a stock fund like the S&P 500?

• Have a diversified portfolio

• Have an investment with low fees

• Don't have to monitor as closely as an actively managed account

• You want to "beat the market" with your ROI