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WorksheetsInvesting Quiz
Total questions: 20
Worksheet time: 11mins
What is the main reason a company issues stocks
help investors earn a higher rate of return
raise money to grow the company
distribute the risk of bankruptcy across more investors
increase awareness of the company
A diversified portfolio is desirable because?
indicates an investor is a good predictor of the return an investment will have
decreases risk by investing money in a variety of investment tools
increases the risk/return ratio
stock analysts use this term for a market that is doing poorly
rooster
bear
bull
sheep
Relationship between risk and return in investing can be stated as:
higher the risk indicates lower potential return
higher risk indicates higher potential return
lower risk indicates higher potential return
A mutual fund is?
option to purchase something in the future at today price
share of ownership in the governement
collection of investments sold as a package
stock analysts use this term for a market that is doing good and is on the rise
rooster
bear
bull
sheep
Which of the following is not a type of bond?
Government
Corporate
Stock
Municipal
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?
2%
3%
30%
70%
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
True or False: Investing in a diversified portfolio of stocks guarantees you will not lose money.
True
False
Profit from the sale of an investment is known as...
collateral gains
Cash
Sales margin
Capital gains
What is the differences between stocks and bonds?
They are both investments.
A stock is what corn grows on, and a bond gets you out of jail.
Stock represents ownership, and bonds represents your word.
A stock represents ownership, and bonds represents a loan.
