WorksheetsCFE Quarter 4 Review
Total questions: 86
Worksheet time: 46mins
Who manages a passively manged fund?
A computer
A person
Who manages an actively managed fund?
A computer
A person
Fees are generally ____ in a passively managed fund.
higher
lower
Fees are generally ____ in an actively managed fund.
higher
lower
The goal of passive investing is to ____.
match the market
outperform the market
The goal of active investing is to ____.
match the market
outperform the market
The type of fund for passive investing is ____.
Index Fund
Actively Managed Mutual Fund
The type of fund for active investing is ____.
Index Fund
Actively Managed Mutual Fund
The individual assets contained in an actively mutual fund are selected by…
The pool of investors
The investor who owns the most shares of the fund
An automated computer program
A professional fund manager
Which is the best description of an index fund?
A mutual fund that tracks the performance of a specific market benchmark
A retirement fund for employees over age 50
An index made up exclusively of government bonds
A safe investment product that guarantees a high rate of return
One downside of active investing is that…
You must have a license, certification, or college degree to make these types of investments
You must buy and sell each day in order for it to work correctly
You are paying a fund manager who charges fees that will eat into your potential returns
You cannot diversify your portfolio using this strategy
All of the following are true about target date funds (TDFs), EXCEPT…
TDFs automatically reallocate your investments over time
TDFs are a good investment option for hands-off investors
TDFs track the performance of a particular market index
TDFs are invested in primarily in stocks when the target date is far in the future
How is an exchange traded fund (ETF) different from a mutual fund?
An ETF can be traded throughout the day and bought from other investors, like a stock
An ETF can only be bought at the end of the day from the fund provider
An ETF is usually actively traded and has higher expense ratios
An ETF is a pooled investment that uses funds from many different investors
What is a robo-advisor?
A security algorithm used by some fund managers to protect your investments
An investment management service that uses a computer program to manage assets
A financial manager who provides specialized advice about technology funds
A popular type of exchange traded fund (ETF) with a low minimum investment
Which list below contains four financial sources you can use to fund your retirement?
Social Security, Medicare, mutual fund, 401(k)
Social Security, Pension, IRA, 401(k)
Pension, traditional, Roth, investment manager
Traditional IRA, Roth IRA, 501(c)(3), income taxes
What is the key difference between a 401(k) and an IRA?
401(k)s incur taxes, but IRAs do not
401(k)s are offered through an employer, but individuals set up IRAs themselves
401(k)s are only available to high income earners, but IRAs can be used by anyone
401(k)s are available to teens, but IRAs are not
Which strategy is most effective to ensure you have enough money for retirement?
Put large amounts of money, monthly, into a savings account with a low interest rate
Invest every month, starting at a young age, in an investment retirement account
Retire as early as possible so you can maximize your Social Security benefits
Invest every month in well performing stocks, starting 10-15 years before your retirement date
With which fund can you trade just like a stock?
Mutual Fund
ETF
This fund usually aims to track a specific index and provide its average return.
Mutual Fund
ETF
Investors buy or sell their shares directly from other investors, like an individual stock.
Mutual Fund
ETF
This fund is traded at the end of the day.
Mutual Fund
ETF
Of the two funds, this type has more total assets under management.
Mutual Fund
ETF
In 2002, there was $102 billion under management by ETFs in the US. ETF assets have grown approximately 25% annually since then.
What is f(14)? What does that represent in this context?
(a)
A Target Date Fund is based off the year you start working.
True
False
Leon is 55 years old and plans to contribute $19,500 to his retirement account
this year. About how much of this money should Leon allocate to stocks if he
is using the Rule of 110?
(a)
Marco is 23 years old and plans to invest $5,500 into his newly opened retirement
account.
Write an equation and use it to determine how much of Marco’s $5,500 should go
towards stocks based on the Rule of 110.
(a)
Jerry bought a brand new car at the dealership one year ago for $35,000. The value of his car depreciates and is worth 20% less each year.
Write the exponential equation that models the value of his car.
(a)
Jerry bought a brand new car at the dealership one year ago for $35,000. The value of his car depreciates and is worth 20% less each year.
What is the value of the car after 5 years?
(a)
As x gets large, y → ___.
0
∞
-3
3
−∞
As x gets small, y → ___.
0
∞
-3
3
−∞
asymptote: y = ___
0
∞
-3
3
−∞
As x gets small, y → ___.
0
∞
-3
3
−∞
asymptote: y = ___
0
∞
-3
3
−∞
asymptote: y = ___
0
∞
-3
3
−∞
As x gets large, y → ___.
0
∞
-3
3
−∞
As x gets large, y → ___
0
∞
-3
3
−∞
As x gets small, y → ___
0
∞
-3
3
−∞
A 401(k) plan is a ___.
special type of business plan
bank account specifically for entrepreneurs
benefit for workers making $401,000 or less
benefit that helps workers invest for retirement
About how much more does money grow when it’s invested rather than deposited in a traditional savings account?
About 10 times more
About 50 times more
About 100 times more
About 500 times more
How can you invest for retirement if your employer does not offer a 401(k) plan?
You simply wouldn’t be able to invest
Open a 401(k) from a relative’s employer
Open an Individual Retirement Account (IRA)
Open a 501(c)(3) instead
What is one example of a service offered by a brokerage?
Offering certificate of deposit accounts
Offering high yield savings accounts
Allowing customers to buy/sell stocks
Allowing customers to sell goods online
How much of your income do experts recommend investing in a 401(k) account?
5%
7%
10%
12%
One difference between a Roth IRA and a traditional IRA is ___.
Roth: pay the taxes up front
Traditonal: pay the taxes when you withdraw
Roth: pay the taxes when you withdraw
Traditional: pay the taxes up front
One difference between a Roth IRA and a traditional IRA is ___.
Roth: has a lower allowable limit you can put in each year.
Traditional: has a lower allowable limit you can put in each year.
If you want to build work experience directly after high school, you could...
(Select all that apply.)
Start an entry-level job
Attend a four-year college
Find an apprenticeship
Volunteer once a year
Which of the following is true about a college education?
(Select all that apply.)
College is the only way to get a stable high-paying job
College grads have higher lifetime earnings on average than HS grads
College grads have a higher rate of unemployment
More education is related to lower unemployment
Why would you ask for an informational interview?
To learn more about why a job rejected you.
To negotiate your salary offer
To learn more about a career or industry
To improve your chances of getting hired
What is the difference between soft skills and hard skills?
Hard skills are easily measurable; soft skills are "people skills"
Hard skills are more advanced than soft skills
In job postings, hard skills are "required" and soft skills are "preferred"
Soft skills are less important to employers because they're not technical
Soft skills are a valuable skill set to have. All of the following are soft skills EXCEPT...
Speaking multiple languages
Creativity
Responsibility
Critical thinking
All of the following are ways to build your professional network, EXCEPT...
Have an "elevator pitch" ready, you may need it
Attend conferences or events related to your field
Stay off all types of social media
Connect & communicate with local professionals
All of the following are effective ways to use social media to find and land a job, EXCEPT...
Network with other people in your industry
Keep your posts and information professional
Follow companies and organizations in your desired field
Criticize your current job to help network & find a new one
What is the purpose of using LinkedIn?
To find honest reviews of an employer or business
To build a professional network and find jobs
To have personal access to industry leaders
To create specific profiles tailored to each job posting
What is the most important job characteristic for all college graduates?
Mission and Purpose
Pay
Opportunity to learn skills
What is the most important job characteristic for recent graduates?
Mission and Purpose
Pay
Opportunities to learn skills
What is the least important job characteristic for both groups?
(a)
Not for-profit organizations focus on (a) first.
For-profit organizations earn revenue in what ways?
(Select all that apply.)
goods
subscriptions
membership
services
donations
Not for-profit organizations earn revenue in what ways?
(Select all that apply.)
goods
subscriptions
membership
services
donations
For-profit organizations do not pay taxes.
true
false
Compared to going to college, working directly after high school has the following advantages, EXCEPT:
Earning money sooner and avoiding the cost of tuition
Gaining work experience and skills
Expanding career growth that never requires further training
Learning about an industry
Which of the following is true about higher education?
Education is not correlated to salary or unemployment rates.
Everyone should go to college, even if they end up with significant student debt.
When looking for a job, higher education is always more important than work experience.
More education is associated with higher lifetime earning and lower unemployment.
(a) are a way to learn a skill, like construction, and get paid while you learn.
Approximately how much do the median executives make per hour?
(a)
Approximately how much more per hour do marketing managers make than film editors?
(a)
Of all professions, which category has the greatest pay disparity?
(a)
What is the advantage of choosing a career with high job growth?
There are more work opportunities, so it will be easier to get a job.
Performance-based bonuses mean you can earn more.
The salary is always higher than in a low-growth job.
High-growth jobs generally require less preparation and training.
An informational interview is all of the following EXCEPT:
a way to learn about a career or organization.
part of the hiring process after applying for a job.
a method of networking with people in a particular industry.
a meeting shorter than 30 minutes.
The difference between hard skills and soft skills is best described as...
Hard skills get their name because they’re hard to measure and soft skills get their name because they’re easy to measure.
Hard skills are technical skills that enable a person to complete specific tasks, where soft skills are personal attributes that allow a person to thrive in more personal situations.
Hard skills are needed in the trades and soft skills are needed in office jobs.
Hard skills are learned on the job and soft skills are learned in school.
All of the following are an example of ways to gain skills EXCEPT:
formal education and certification programs.
internships, apprenticeships, and on-the-job experience.
seeking guidance from a mentor.
listing a skill on your resume' that you don't have yet, but plan to have in the future.
Select the main sections you can expect to see on a job posting.
(Select all that apply.)
company description
salary
role description
preferred minimum qualifications
cost of uniforms
What is the maximum amount of time for an elevator pitch?
15 seconds
30 seconds
45 seconds
1 minute
When first meeting someone, your (a) tells a lot about you.
In an elevator pitch, what are some things you definitely want to talk about?
(Select all that apply.)
people you know
what job you want and why
what you have to offer
your soft skills
your favorite movie
All of the following are benefits of using LinkedIn EXCEPT:
You can skip several steps of the hiring process if you apply through LindedIn.
You can connect with other professionals in your industry.
You can discover jobs that might be a good fit for you.
You can expand your knowledge through groups and the posts your connections share.
Which is a recommended practice when using LinkedIn?
Invite as many people to connect, even if you don't know them.
Apply to jobs using on the Easy Apply feature.
Send a personalized note in your invitation to connect.
Ask for a big favor immediately after connecting with someone.
Maintaining a safe and professional digital footprint means...
you share on a frequent basis, even if you don't feel like it.
You post something to your story but delete it after a few minutes.
You create a spam account to post other content.
You post responsibly, remembering what you post may affect you and other people.
