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WorksheetsInvesting Fundamentals Review
Total questions: 20
Worksheet time: 15mins
Investment goals must be: (can be multiple answers)
Written
Specific
Measurable
Kept to yourself
What questions should you ask yourself before creating your investing goal? (can be multiple answers)
How much money will I need?
How long will it take to reach my goal?
How much risk am I willing to assume?
Are my goals reasonable?
What is an emergency fund, and how much of your income should it be?
A fund that you raise for firefighters and police officers; 1 month of your salary
Money saved away that you can use quickly in case of an emergency; 3-6 months
Money saved up that you can send to the Red Cross that you can donate when a natural disaster comes; 2 months
Before investing your money, you should: (multiple answers may be selected)
Make sure your budget is balanced
Perform a Financial Check up
Increase your credit card purchases to save cash
Create a goal
What are some good ways to save up your money to invest? (can have multiple answers)
Steal
Sacrifice some purchases to save instead
Make a concentrated effort one or two months each year to save more
Put money into investments first after getting your paycheck, not waiting until all bills are paid.
What is the definition of Safety in regards to investing?
A defensive position in football
No risk of loss
Minimal risk of loss
Talking with a professional before investing
What is Risk in terms of investing?
A measure of uncertainty about the outcome.
A cool board game
A sure investment that cannot lose money
Not talking to a professional before investing
What is the relationship between Risk and Return? (can be multiple answers)
High Risk = Low Return
Low Risk = High Return
High Risk = High Return
Low Risk = Low Return
What are the 4 levels of the Investment Pyramid from Lowest Risk to Highest Risk?
Speculation, Growth, Safety & Income, Financial Security
Growth, Financial Security, Safety & Income, Speculation
Financial Security, Speculation, Safety & Income, Growth
Financial Security, Safety & Income, Growth, Speculation
What are some examples of Safe Investments
Baseball Cards and Precious Metals
Growth Stocks and Rental Property
Conservative Mutual Funds, Corporate and Municipal Bonds
Speculative Stocks
What is the formula for determining what percentage of your portfolio should be in the Growth category?
220 - your age
100 - your age
Your net worth + Your salary
Your age * 3.14
What is Liquidity in terms of investing?
When matter is neither a solid or a gas
How quickly you can buy/sell an investment without substantially affecting the value of the investment
How long you have owned an investment
How much risk is involved with an investment
Which is more a more liquid investment?
Real Estate
A checking account
What is Asset Allocation
Hiding your money under the cushions of different pieces of furniture around the house
Spreading your assets around several different investments of the same type
How you budget your monthly income
Spreading your assets around several different investments of various types
Should you have more of a growth portfolio when you are younger or older?
Younger
Older
What is a Mutual Fund?
A loan to the government or corporation that will be repaid at the maturity of the loan.
Buying a direct share in a company which makes you a partial owner.
Money pooled together by investors that is managed by a professional fund manager that provides diversification.
A stock that you and a partner both buy.
What is a Stock in terms of investing?
A loan to the government or corporation that will be repaid at the maturity of the loan.
A direct share in a company which makes you a partial owner by purchasing.
Money pooled together by investors that is managed by a professional fund manager that provides diversification.
The amount of inventory in the back of a store.
What is a Bond in terms of investing?
A loan to the government or corporation that will be repaid at the maturity of the loan.
Buying a direct share in a company which makes you a partial owner.
Money pooled together by investors that is managed by a professional fund manager that provides diversification.
A famous spy from Great Britain.
True or False: You should continue to monitor and evaluate your investments as time goes on.
True- Making sure my investments continually match my goals is a good idea.
False- Once I invest it I never have to look at it again.
What are some good places to find information about investing?
The Internet
Psychics
Newspapers and Business Journals
Astrology Signs
