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Worksheets5.03 The Fundamentals of Investing Note Taking Guide
Total questions: 15
Worksheet time: 8mins
Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss.
Net Worth
Return
Investment
Risk
Why are investments less liquid than savings tools?
Investment are for long term goals.
All investments have some risk .
The danger that money won’t be worth as much in the future as it
They may not easily be converted into cash
Which investment definition deos this refer to: A form of lending to a company or the government.
Bond
Stock
Real Estate
Speculative Investments
Which investment definition deos this refer to: Ownership of residential or commercial property or land.
Bond
Stock
Real Estate
Speculative Investments
Which investment definition deos this refer to: Have the potential for significant fluctuations in return over a short period of time.
Bond
Stock
Real Estate
Speculative Investments
Which investment has types of returns include: Capital gains (selling property for more than what was paid)
Bond
Stock
Real Estate
Speculative Investments
What is the risk level of stocks?
Low
Medium
High
Depnends on the investment
What is the risk level of Speculative Investments?
Low
Medium
High
Depnends on the investment
A mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index.
Bond
Stock
Index Fund
Speculative Investments
The investment philosophy may be influenced by...
money
type of investment
stock market
time
Reduces risk by spreading money among a wide array of investments.
Portfolio Diversification
Brokerage Firms
Investment Philosophy
Mutual Funds
Investments have the potential for _________ returns.
lower
higher
greater
basic
Investment are for ______ goals.
short term
mid term
long term
retirement
Total Return divided by Amount of Money Invested =
Rate of Risk
Rate of Return
Risk and Return
Return
Strive to have the rate of return on an investment be ______ than the rate of inflation.
higher than
lower than
better
riskier
