WorksheetsCh 8 Mutual Funds & EFT's
Total questions: 16
Worksheet time: 11mins
What are Mutual Funds?
Pools of money from investors that fund managers invest
Similar to a mutual fund but are purchased through a stock exchange
Uses debt to amplify the return
Small companies, less than $2 billion in size
What are Value Stocks characterized by?
Rapidly expanding revenue and profits
Cheaper prices and higher dividends
Investing in real estate trusts
Reducing volatility
What do Sector Funds invest in?
Small companies
Specific industries
Real estate trusts
Reducing volatility
What are Specialty Funds invested in?
Real estate trusts and precious metals
Small companies
Specific industries
Reducing volatility
What do Balanced Funds try to maintain?
A constant percentage of investment in both stocks and bonds
A high rate of return
Investment in real estate trusts
Investment in specific industries
What are Index Funds?
Pooled investments that passively aim to replicate the returns of market indexes
Investments in real estate trusts
Investments in small companies
Investments in specific industries
What is a recommended strategy for bond investment regarding past performance?
Ignore past performance
Reflect on past performance
Focus only on future predictions
Avoid experienced funds
What is a way to minimize costs when investing in bonds?
Stick with inexperienced funds
Stick with experienced funds
Avoid index funds
Invest in high-fee funds
Hybrid funds reduce volatility
True
False
When are intermediate bonds best?
When you need the money in 1 year
When you don’t need the money for 3-5 years
When you are in a high tax bracket
When you are open to volatility
What is a reason to avoid short-term bonds?
if you are in a high tax bracket
Sensitivity to interest rate fluctuations
Need for long-term investment
High volatility
What is a good reason to choose long-term bonds?
Need for money in 1 year
Don’t need money for more than 10 years
High tax bracket
High volatility
Match the following terms and definitions
pools of money from investors managed by fund manager
Mutual Fund
Similar to mutual fund but purchased through a broker in the stock exchange
ETF
Uses debt to amplify the return
Leveraged EFT's
US companies that invest overseas
Diversified International
Determining your investment mix
Asset Allocation
Match the following
Less than $2 billion in size
Small Cap Company
2-10 Billion in size
Mid Cap Company
Over 10 billion in size
Large Cap Company
Match the following
Have cheaper prices and higher dividends
Value Stock
Have rapidly expanding revenue and profits
Growth Stock
Are invested in specific industries
Sector Funds
Are investing in special things like real estate and precocious metals
Specialty Funds
Can be used to reduce the volitality
Hybrid Funds
Which is a way to make $ with stocks
Being Paid dividends
Capital gains on distributions when sell a stock
Stocks appreciate in value
All of these are ways to make $
