WorksheetsU7 Investing for the Future
Total questions: 21
Worksheet time: 1hrs 1mins
Jordan invests in securities from different industries to reduce the impact of portfolio losses.
How would you describe Jordan's financial portfolio?
Diversified
Speculative
Excess savings
Beginning Investing
What is a good description of the "Initial (Beginning) Investing" stage?
Long-term investing for a secure financial future.
The use of excess savings to buy permanent, low-risk investments.
Buy high-risk securities to earn greater returns.
Regular, scheduled investments that have tax benefits
Which of the following describes "Speculative Investing"?
Portfolio of diversified securities that yield a medium return.
High-risk investments that most people never explore (high return potential)
Invest in retirement plans on a regular, planned basis
Save for emergencies.
What is "Systematic Investing"?
High-risk investments that most people never explore
Save 3 - 6 months of net pay for emergencies.
Regular, planned investments in retirement plans.
Conservative, low-risk investments.
All of these are "Types of Risk" associated with investments EXCEPT:
Employee Risk
Political Risk
Market Risk
Interest Rate Risk
According to the "Risk-Return Pyramid," which of the following is a "LOW risk / LOW return" investment? Choose ALL that apply.
CDs
U.S. Government Savings Bonds
Treasury Securities
Mutual funds
Cash and Cash Equivalents
According to the "Risk-Return Pyramid," stocks and mutual funds are examples of what type of risk/return?
Low Risk/Low Return Investments
High Risk/High Return Investments
Medium Risk/Medium Return Investments
Low Risk/High Return Investments
According to the "Risk-Return Pyramid" (and stages of investing), how are futures, options and penny stocks classified?
High Risk/High Return
Low Risk/Low Return
Medium Risk/Low Return
High Risk/Low Return
Which of the following investments are purchased in "Strategic Investing (4th)" stage? Choose all CORRECT responses.
Mutual funds
Bonds
Stock options
Savings account
Stocks
Which of the following investments are purchased in "Beginning Investing (2nd)" stage? Choose all CORRECT responses.
Stocks
CDs
Penny stocks
Collectibles
Bonds
How long will it take $5,000 to double if it earns a 9.5% return?
7.5 years
7.5%%
13.1%
13.1 years
How can you double $2,000 if it's invested for 7 years?
10.2 years
10.2%
9.7 years
9.7%
Suann has a checking and savings account (emergency fund), a bond and a CD. She would like to expand her portfolio. In what stage of investing is Susann?
Stage 1
Stage 2
Stage 4
Stage 5
Suann has a checking and savings account, a bond and a CD. She would like to expand her portfolio. Suann's goal is to invest in the next stage. Based on her goal, what would you recommend she add to her portfolio?
Stocks and mutual funds
Savings and checking accounts
Bonds and CDs
IRA and/or employer retirement plan
Juan is married with 2 children. He earns $6,000 a month (net pay/paycheck). What is the MINIMUM Juan should have saved for emergencies?
$30,000
$18,000
$24,000
$12,000
Alison has the following in her financial portfolio: Roth IRA savings, bonds, 403(b), and checking. Based on her portfolio, in what stage of investing is Alison?
Put-and-Take
Beginning Investing
Systematic Investing
Speculative Investing
Alison has the following in her financial portfolio: savings, checking, bonds, Roth IRA, and a 403(b). She is ready for the NEXT STAGE of investing, so what TWO (2) securities would you recommend? Choose ALL correct responses.
CDs
Traditional IRA
Stocks
Futures
Mutual funds
Which of the following is LEAST LIQUID?
Penny stocks
Bond
Mutual fund
Checking account
CD
Which of the following has the LOWEST RISK and RETURN potential?
Collectibles
Bond
Mutual fund
Futures
Stock
Which of the following are "investment criteria" you should consider BEFORE you choose an investment? Choose ALL that apply.
Safety
Liquidity
Purchase price
Tax benefits
Anticipated dividend or interest
Which of the following are important factors to consider BEFORE you begin investing your excess savings? Choose ALL that apply.
Financial goals
Risk tolerance
Your age
Lifestyle
Your income, marriage, children
