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Types of Assets

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

Suppose you have a certain amount of money that you would like to invest in the least risky assets and, if necessary, quickly convert them back into money. Which asset would you prefer?

a)

Stocks

b)

Bonds

c)

Cash equivalents

d)

Commodity

2.

Which of the following assets is the least risky?

a)

Stocks

b)

Swaps

c)

Options

d)

Bonds

3.

I am an investor who is willing to take risks and aims for a high return on investment. Which portfolio do you suggest me?

a)

100% in stocks

b)

20% in stocks and 80% in bonds

c)

25% in stocks, 25% in bonds, 25% in currency and 25% in derivatives

d)

50% in bonds and 50% in real estate

4.

What type of derivatives does not offer commitment?

a)

Forwards

b)

Futures

c)

Swaps

d)

Options

5.

If I am an investor who does not like to take risks. Should I buy different stocks from the same industry?

a)

Yes

b)

No

6.

I am a risk-aversion person. What rules should I follow?

a)

Invest all resources in fixed income securities

b)

Try to invest in different types of assets

c)

Focus on analyzing market trends

d)

Try to copy the strategies of other investors

7.

Which contract is exchange-traded?

a)

Forwards

b)

Swaps

c)

Futures

d)

Stocks

8.

I bought the call-option. The price of underlying asset was decreased. Is it profitability to realise the call-option? Do I win in this situation?

a)

Yes, yes

b)

Yes, no

c)

No, yes

d)

No, no

9.

I bought the forward. The price of the underlying asset at maturity was increased. Do I win from such contract? Is it possible to refuse to realise forward?

a)

Yes, Yes

b)

Yes, No

c)

No, Yes

d)

No, No

10.

Which of the following assets should be used as a long-term investment?

a)

Real Estate

b)

Cash and cash equivalents

c)

Equity

d)

Bonds