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Investments Flashcards | StudBud

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Investments

6 terms·StudBud Administration·41 plays

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Questions 6

Answers

1
Speed * Profit * Debt (leverage) =
the return on assets
an attractive rate of return
the return on equity
investment nirvana
2
The EMH means that
Prices do not reflect intrinsic value
Efficient markets never exist
Buying cheap and selling high is the best way to go
Investors are wasting their time trying to beat the market
3
The 4 keys to stock market success include
Sector rotation and industries
Always stay invested
How much money you have to start with
The current economy
4
investment nirvana comes from
portfolio diversification
holding two negatively correlated assets
proper market timing
make a great trade!
5
What's the difference between investing and speculating?
Investors are more aggressive than speculators
Speculators want to make money more than investors
Speculators face concentration risk
Investors place all their eggs in one basket
6
The risk / return trade off means
investing success is random
only the 1% wins
there is no free lunch
nothing ventured nothing gained