Which of the following statements about stock is FALSE?

C. Stocks pay out interest annually

Which of the following statements is FALSE?

A. Investing = maintaining the value of your money with a little growth

Jason: 58 years old, strong financial health, short time horizon, and average tolerance. Which asset allocation is best?

C. 45% stocks and 55% bonds/cash equivalents

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Investing MarketWorks Review

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Questions 9

Answers

1
Which of the following statements about stock is FALSE?
C. Stocks pay out interest annually
D. Stocks are considered relatively risky compared to bonds
B. When you buy stocks, you get a say in the shareholder meetings
A. Stocks represent a share of ownership in a company
2
How comfortable you feel taking the risk of losing your money refers to
D. Risk Tolerance
A. Time Horizon
B. Asset Allocation
C. Personal Financial Health
3
Which of the following statements is FALSE?
B. Savings accounts earn interest; stock market investments earn a return
C. If withdrawing money in the near future, savings accounts are best
A. Investing = maintaining the value of your money with a little growth
D. Investing is riskier than putting your money in a savings account
4
Why might an investor want to invest in the stock market?
Guaranteed way to make money
Usually offers a higher return than interest earned on a savings account.
Offers a chance to share in company profits
Both Blue & Yellow
5
Jason: 58 years old, strong financial health, short time horizon, and average tolerance. Which asset allocation is best?
A. 80% stocks and 10% bonds/cash equivalents
C. 45% stocks and 55% bonds/cash equivalents
B. 65% stocks and 35% bonds/cash equivalents
D. 25% stocks and 75% bonds/cash equivalents
6
Historically, long-term returns of the stock market have been negative.
False
True
7
_____ is an investment strategy that mixes a wide variety of investments from different categories within a portfolio.
B. Diversification
D. Technical Analysis
A. Asset Allocation
C. Risk Tolerance
8
A ____ is a share of ownership in a company.
Mutual Fund
Bond
Stock
Cash Equivalent
9
You can diversify your portfolios by investing all your money in one industry.
True
False

Investing MarketWorks Review Flashcards | StudBud