Worksheets(10.4) Investment Risk and Return Quiz
Total questions: 11
Worksheet time: 6mins
What does "risk" in investing refer to?
The certainty of gaining money
The uncertainty or variability of the outcome of an investment
The guarantee of losing money
The fixed return on investment
What might happen if you invest in a company with a strong track record?
Higher risk and higher return.
Lower risk and lower return.
Lower risk and potentially lower return.
Higher risk and lower return.
Which type of investment is typically issued by the government?
Penny stocks
Index funds
Treasury bills
Corporate bonds
What is an example of a moderate-risk and moderate-return investment?
Treasury bills
Bonds
Mutual funds
Cryptocurrency
Which type of investment is associated with high-risk and high-return?
Bonds
Index funds
Stocks
Treasury bills
What does the Rule of 72 allow investors to see quickly?
Tax liabilities
Loan interest rates
How long it will take for money to double
Monthly expenses
What is one way to grow your money and reach your goals faster?
Saving in a bank account
Investing
Spending wisely
Borrowing money
What might vary when receiving dividends?
The type of stock
The amount you receive
The color of the stock certificate
The number of shares you own
What should you consider if you're unsure about investment options?
Avoid investing
Talk to a financial advisor
Invest randomly
Ignore the options
What is a dividend?
A fee charged for stock transactions
A type of stock
A portion of a company's earnings distributed to shareholders
The interest rate on a bond
The relationship between risk and return is often represented by which of the following statements?
Higher risk guarantees higher returns
There is no relationship between risk and return
Lower risk guarantees higher returns
Higher risk is associated with the potential for higher returns
