Investing

Front

The relationship between risk and return can be stated as

Back

Higher risk suggests higher return

Front

Your risk tolerance for investing should be determined by these two factors: Your time horizon and when you will need access to the money

Back

Your time horizon and when you will need access to the money

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

Why do companies issue stocks?

Back

To raise money for economic investment.

Front

When you buy a stock, you are buying a small piece of _______ in a company.

Back

ownership

Front

What is an IPO?

Back

Initial Public Offering

Front

Which is NOT a stock market index? Options: Dow Jones Industrial Average, S&P 500, Nasdaq

Back

New York Stock Exchange

Front

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

Back

30%

Front

A diversified portfolio is desirable because

Back

It decreases risk

Front

True or False: Investing in a diversified portfolio of stocks guarantees you will not lose money.

Back

False