Investment and Goal Setting Quiz

What is an asset class?

• A type of investment with similar characteristics

• A short-term financial goal

• A method of risk management

• A type of stock index

Which of the following is a characteristic of a short-term goal?

• Achievable in a long time frame

• Requires diversification

• Achievable in a short time frame

• Involves market capitalization

What is a long-term goal?

• A goal that can be achieved quickly

• A goal that requires a long time to achieve

• A goal that involves stock index

• A goal that is not specific

What does diversification mean in risk management?

• Focusing on one type of investment

• Spreading investments across various assets

• Investing only in blue-chip companies

• Ignoring market capitalization

What is a blue-chip company?

• A small, high-risk company

• A well-established, financially sound company

• A company with low market capitalization

• A company that only deals with short-term goals

What is market capitalization?

• The total value of a company's outstanding shares

• The process of diversifying investments

• A type of asset class

• A short-term financial goal

What is a stock index?

• A measure of a section of the stock market

• A type of asset class

• A short-term goal

• A method of diversification

What does it mean for a goal to be specific?

• It should be vague and broad

• It should contain specific details about what you want to achieve

• It should be impossible to measure

• It should not have a time frame

What does it mean for a goal to be measurable?

• You cannot determine if it has been met

• You can measure whether or not it has been met

• It should not have specific details

• It should not be attainable

What does it mean for a goal to be attainable?

• It should be impossible to achieve

• It should be small enough to meet in a realistic time period

• It should not have a time frame

• It should not be specific