Which is true about risk and return?

Rule of 72 is the rule that...

A collection of stock bought as a package deal is called a

A price-weighted index that tracks 30 large, publicly owned, companies trading on the New York Stock exchange and Nasdaq.

Investment securities where an investor lends money to a company or government for a set period of time in exchange for regular interest payments.

The process of spreading your investments around so that your exposure to any one asset is limited.

A broker that buys and sells securities on the stock exchange on behalf of clients.

The ease to which an asset or security can be converted into ready cash without effecting it’s market price.

Items that are worth far more than their than their original sale price and are considered alternative investments.

The risk that your purchasing power will be reduced if the value of your investments does not keep up with inflation.

A set of beliefs and principles that guide an investors decision making process.

A types of mutual fund or exchange-traded fund that seeks to track the returns of a market index.

After-tax dollars retirement plan

Individuals with an aggressive investment philosophy are not willing to take on risk for the potential of higher returns.

Stocks are riskier than bonds

Which answer correctly organizes the choices from most risk to least risk?

Hannah is 16 and has earned extra money at her summer job.  She decides to invest it and let it grow until retirement.  She has 49 years until retirement.  Which of the following investment philosophies would best fit Hannah?

A diversified portfolio is desirable because...

You should invest as soon as you can.