WorksheetsEquity Portfolio Management
Total questions: 10
Worksheet time: 4mins
A collection of investments like stocks, bonds mutual funds etc.,
Portfolio
Assets
Wealth
Liabilities
Portfolio investment is done based on the investor's
risk tolerance
desire
aspiration
wealth
One of the ways you create your portfolio is determining the best
allocation and diversification
assets and liabilities
profit and loss
interest and costs
Which is NOT a stock market index?
New York Stock Exchange
Dow Jones Industrial Average
S&P 500
Nasdaq
How can you make money on stocks? (hint: choose 2 correct answers)
A capital gain
Interest
Dividends
Holding the stock at least 3 years
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
Which is NOT a good reason to buy a stock fund like the S&P 500?
Have a diversified portfolio
Have an investment with low fees
Don't have to monitor as closely as an actively managed account
You want to "beat the market" with your ROI
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
What is NOT a characteristic of passive management?
Long-term buy-and-hold strategy
Tracks an index over time
Seek “alpha” value
Match market performance
What is a characteristic of growth investing?
Stable earnings
Assume P/E is lower than natural level
Focus on price component
Assume constant P/E
