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WorksheetsChapter 4 Review
Total questions: 23
Worksheet time: 45mins
Investments are Liquid
True
False
What are some things to consider when investing?
The high-Interest debt you carry
Risk Tolerance
Emergency Fund Balance
Time Horizon
All of the above
How do you calculate compound interest?
How do you calculate Dividend Yield?
If a stock is worth $20 and it pays out $1 in dividends in the next 12 months what is the Dividend Yield?
1%
5%
10%
15%
List the way you can classify a bond.
List the ways you can classify a stock.
Stocks are also known as -----
(a)
A bond for Apple that you plan to keep for more than 20 years is also known as (a)
Give an example of a stock sector classification
List the ways that stocks make money
In your own words describe what the differences between stocks and bonds
What is asset allocation?
Two assets that perform "opposite" of each other is called a ----- correlation
(a)
When comparing two similar investments and their rates of return, what might be something to consider when judging the risk of the investments?
Dividends
Risk-Free Rate of Return
Asset Allocation
Standard Deviation
What is an example of unsystematic risk?
Interest Rates
a company has a negative cash flow and defaults on some loans
Negitive Political News
Changing Tax Laws
What is the definition of a "Risk-Free Rate of Return"?
What is the definition of "Market Return Rate"?
What is the definition of "Market Risk Premium"?
What is the difference between a Mutual Fund and an ETF?
(a)
What can you do to reduce unsystematic risk?
(a)
What is it called when you invest a fixed amount of money each month?
(a)
What is an Index Mutual Fund?
