Investing End of Unit Project

Front

Investments with _____risk often have the potential for _____returns

Back

greater, higher

Front

lower-risk investments like bonds or savings accounts typically offer _____ returns.

Back

lower

Front

What does "risk" in investing primarily refer to?

Back

The uncertainty about returns and potential loss of capital.

Front

What is the primary goal of diversification in investing?

Back

Reducing exposure to a single risk by spreading investments across various assets, industries, and regions.

Front

What is the main benefit of using the dollar-cost averaging strategy?

Back

Regularly investing a fixed amount to reduce emotional investing and encourage consistency.

Front

Investments with greater risk often have the potential for higher returns

Back

true

Front

What is a key characteristic of mutual funds?

Back

They pool money from shareholders to invest in a portfolio of assets and are often actively managed to outperform the market.

Front

What is a key feature of index funds?

Back

They track a specific market index and match its performance.

Front

What is a key characteristic of a target-date fund (TDF)?

Back

It is periodically rebalanced to optimize returns over the long term.

Front

TDFs are designed to invest heavily in riskier growth stocks in the early years and then in later years invest in more conservative options.

Back

true