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Check: Lesson 3 Flashcards | StudBud
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Check: Lesson 3
Check: Lesson 3
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How much do you remember from last week's Lesson 4: Volatility/Diversification?
Flashcards
11 cards
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Practice quiz
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Questions
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Answers
1
High volatility =
big price swings, unstable price
small price swings, unstable price
small price swings, stable price
big price swings, stable price
2
Does diversifying get rid of risk?
Not at all.
Sometimes.
Absolutely!
Not completely, there's risk on individual stocks and in the market.
3
How are volatility and diversification related?
One individual stock can change a lot and go way up or way down
They're not
A group of stocks usually don't move together, so have lower volatility
Diversifying reduces volatility
4
Which is likely to be more volatile?
S&P 500 (largest 500 companies)
Industrials
Microsoft
Tech
5
Large amounts of volatility
Can cause some investors to stay away from a particular stock
All of the above
Can cause large amounts of loss for purchasing stocks
Can cause large amounts of profits for purchasing stocks
6
The S&P 500 represents
The oldest auto race in the United States
An index of 500 weighted, well-known companies for stock investment
The number of times the top stocks increased throughout their histories
None of the above
7
What is volatility?
When a stock price is really low
When a stock price is really high
Range of price changes that a stock experiences over time
A moody stock trader
8
Low volatility =
big changes in price, stable price
small changes in price, unstable price
small changes in price, stable price
big changes in price, unstable price
9
Which is the most diversified?
S&P 500 (largest 500 companies)
Tech stocks
Apple Stock
Amazon stock
10
Which of the following could have an impact on a stock's value
Recession
Inflation
All of the above
Daily negative and uniformed tweets from a company's CEO
11
Diversifying reduces
money made
money lost
volatility
idiosyncratic risk
