WorksheetsStart Investing Exit Ticket
Total questions: 5
Worksheet time: 3mins
What is diversification?
Spreading your money among different types of investments
Investing all your money in one type of investment
Keeping all your money in a savings account
Borrowing money to invest in the stock market
How does diversification help stabilize a portfolio?
By increasing the value of all investments simultaneously
By reducing the overall risk of the portfolio
By guaranteeing a positive return on all investments
By eliminating the possibility of any investment losses
Over about 40 years, your portfolio should probably:
Change from higher-risk to lower-risk investments
Sell every holding each year to figure out how well you are doing
Grow equally well in all sectors, or it is a bad financial plan
Become less and less conservative, increasing in risk from year to year
An Investment Portfolio Includes-
Bonds
Stocks
Other Securities
All of the Above
