20 Questions
What is the main characteristic of impact investors?
They expect measurable and beneficial outcomes beyond financial gains.
Which deceptive practice involves presenting selective data or statistics to make a product or company appear more environmentally responsible than it is?
Cherry-Picking Data
What term is used for an organization portraying itself as environmentally friendly when its operations negatively impact the environment?
Green Washing
How do companies engage in Diversion Tactics regarding environmental claims?
By focusing on unrelated charitable contributions
What is the primary issue with using Vague Terminology in environmental claims?
It confuses consumers.
Which factor does NOT affect the choice of investments?
Charitable contributions
What is the importance of establishing investment goals?
To provide direction and purpose for investment decisions
What preparation is necessary to embark on an investment plan?
Establishing investment goals
How do companies misleadingly imply environmental friendliness?
By using vague terminology
What is the center of the asset allocation process in investments?
The choice of investments
What is the main disadvantage of REITS mentioned in the text?
Debt used for leverage effect
When structuring an investment portfolio, which criteria are mentioned in the text?
Risk Tolerance Level
An investor with high risk tolerance would most likely have a portfolio with:
Only high-risk assets
What is the potential impact on an investor's choice of investments if they are more focused on investment growth rather than investment income?
The investor may choose riskier investments with higher potential for capital appreciation.
How does an investor's age typically influence their risk tolerance and investment choices?
Older investors usually prefer low-risk assets to protect their retirement savings.
How does an investor's liquidity needs impact their investment decisions?
Investors with low liquidity needs usually hold assets that can be quickly converted into cash.
In the context of investment risks, which investor is likely to have a higher proportion of international equities in their portfolio?
An investor with high risk tolerance
What is the primary reason for including international fixed-income investments in a portfolio?
To hedge against currency fluctuations
Which type of asset allocation is more likely to include tangible assets like real estate and gold?
High risk tolerance portfolio
When comparing international fixed-income investments and international equities, which asset class typically carries higher volatility?
International equities
Test your knowledge on investments that align financial goals with ethical and responsible considerations, such as renewable energy and clean technology. Examples include investing in companies that support clean and renewable energy sources like wind, solar, and hydroelectric power.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
