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Investing 101 QUIZ - 2024

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

What did Raymond study at University?

a)

BA in Economics and History

b)

LLB/Diploma in Business (Finance)

c)

BSc in Mathematics and Physics

d)

BE(Hons) in Civil Engineering

2.

What is the name of Raymond’s Company?


a)

Berkshire Hathaway Inc.

b)

Equity Corp.

c)

Industrial Equity, LLC

d)

Low-Risk Investments Inc.

3.

What does Industrial Equity, LLC invest in?

a)

US stocks and bonds

b)

Cryptocurrency

c)

Real Estate Investment Trusts (REITs)

d)

NZX Top 50 ETF

4.

What does Raymond say about leaving your job?

a)

The grass is always greener

b)

There is no need to maintain relationships because you will never see your workmates again.

c)

Try to leave on good terms because you may end up working with someone again.

d)

Never leave your job

5.

Which statement best describes ‘value investing’?

a)

Investing in stocks or other instruments priced below their intrinsic value.

b)

Investing in ‘cigar butt’ stocks which offer a quick return

c)

Investing only in technology stocks because they are the most valuable

d)

Investing in companies which sell high-value products

6.

How to calculate a company’s Earnings Per Share (EPS)?

a)

Revenue minus Expenses

b)

Profit before Interest and Tax (EBIT) / Average Total Assets

c)

Net Profit after Tax / Shares Outstanding

d)

Total Liabilities / Total Assets

7.

Charlie Munger died in November 2023, aged 99. Who was he?

a)

Former Chairman of the US Federal Reserve

b)

Author of “Margin of Safety”

c)

Former Professor of Law at the University of Auckland

d)

Business Partner of famous investor Warren Buffet

8.

When the market interest rate declines, what happens to the price of existing bonds?

a)

They stay the same price

b)

The price rises

c)

The price falls

d)

Its impossible to tell – the Prime Minister sets bond prices after each Cabinet meeting.

9.

Who would Raymond choose for his KiwiSaver provider?

a)

The UAIC Investment Committee

b)

KiwiBank

c)

Tower Insurance

d)

SuperLife

10.

What DOESN’T Raymond say about being a successful investor?

a)

Steadily add to your investments over time

b)

Contribute at least $1042.86 to KiwiSaver annually

c)

Always try to ‘time the market'

d)

Read a lot: books on investing and company reports