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Investments Review ITB 2023 Flashcards | StudBud
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Investments Review ITB 2023
Investments Review ITB 2023
23 terms
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Quiz Review Game!
Flashcards
23 cards
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Questions
23
Answers
1
What is the approximate historical return of "the stock market" (aka the S&P 500)?
8.5 - 9.5%
9.5 - 10.5%
It's all a lie!
7.5 - 8.5%
2
Which of the following is true of bonds, but not stocks?
Defined rate of return
Has the chance of becoming worthless if the company fails
Part ownership in the company
Can be sold to another investor
3
The S&P 500 is the example of a...
Nascar Race
Bond Fund
Stock
Stock Index
4
GoPro has a market cap of $550 million. What size company is it?
Large Cap
No Cap
Small Cap
Mid Cap
5
If you short sold a stock and you want to "get out" of this position you need to...
Borrow shares
Buy to cover
Sell to cover
Sell
6
A portion of a company's profits paid out to shareholders
Dividends
Capital Gains
Payments
Coupon Payments
7
What is the upside of having a safe investment portfolio?
Greater chance of big losses
Greater chance of a high return
Lower chance of big losses
Greater chance of a low return
8
Mr. Duffett's & Warren Buffett's favorite mutual fund type b\c of low fees and average market returns
Biotech Mutual Fund
Bond Mutual Fund
Asset Allocation Fund
Index Mutual Fund
9
Semi-annual payments that bondholders receive as interest
Maturity Dates
Coupon Payments
10% off everything in the store coupons
Default
10
Which rate of return will make you the most money?
3.5%
5%
10%
8%
11
What makes an index mutual fund different from other funds?
Lower fees
Higher turnover
Higher fees
Ability to beat the market average
12
The investing strategy where you spread your money among several different investments
Risk downsizing
Short Selling
Mutual Investing
Diversification
13
Which input of the compound interest formula is most powerful & easiest to control?
None of the above
Time
Rate of Return
Monthly investment
14
If you want to win the stock market game you should...
Invest in smaller, riskier companies
Keep half of your money in cash
Invest in only large companies you've heard of
Buy an index mutual fund
15
Which of these investments will pay you the most dividends this year?
Company D
Company B
Company A
Company C
16
What is it called to have ownership in a company
Loans
Credit
Bond
Equity
17
You're comparing two stocks. Stock A has a P/E ratio of 150. Stock B's P/E is N/A. Which is more "overvalued"?
Cannot be determined
Neither are overvalued
Stock A
Stock B
18
A 22 year-old starts investing for retirement. How aggressive/risky should they be with their investment portfolio?
Any of the above.
Balanced (mix of stocks and bonds)
Conservative (mainly bonds)
Aggressive (mainly stocks)
19
A company has $100 million in Revenue and $200 million in Expenses. What is its profit?
$100 million
$200 million
Cannot determine without more information
-$100 million
20
Which of the following is the most risky investment?
Small Company Stock
Bonds
Large Company Stock
Cash
21
True or False: Short selling is riskier than going long
False
True
22
What is it called when a bond issuer fails to repay the bond?
Coupon Payment
Maturity
Default
That's not very nice...
23
What is a mutual fund?
An individual retirement account (IRA) or 401(k)
A government-issued savings bond
An investment that pools together money to buy a portfolio of investments
A stock from a company
