WorksheetsActive vs Passive Investing
Total questions: 8
Worksheet time: 4mins
What are the two main ways to invest your money that were talked about?
Active and Passive
Short-term and Long-term
High-risk and Low-risk
Stocks and Bonds
What is the main goal of active investing?
To make your money grow slowly
To try and earn more money than the market
To put all your money in one place
To never sell your investments
What is one good thing about active investing?
It has low fees
It doesn't cause much worry
You might earn a lot more money if you do it well
You don't need to learn much about it
What is one bad thing about active investing?
It is very easy to do
It has low costs
It takes a lot of time to study and learn
It always makes you rich
What is a simple way to describe passive investing?
Always changing your investments
Trying to pick the best companies
A 'set it and forget it' plan
Buying and selling stocks every day
What kind of investments do passive investors often use to follow the market?
Only one company's stock
Expensive jewelry
Index funds or ETFs
Houses and land
What is a good reason to choose passive investing?
It costs a lot of money
It makes you worry a lot
It has often made more money than active investing over a long time
You have to watch it all the time
What did studies find about most active fund managers over 15 years?
They usually earned more than the market
About half of them earned more than the market
Most of them (over 90%) did not earn more than the market
They always earned exactly the same as the market
