Recent

  • Show all results for ""
Life Sciences: Genetic lineages/pedigrees
64 Questions
0 Views

Life Sciences: Genetic lineages/pedigrees

Created by
@GreatestTiger

Questions and Answers

What is typically the relationship between risk and potential return in investments?

  • Higher risks are usually associated with higher potential returns. (correct)
  • Higher risks usually result in lower potential returns.
  • Risk and return do not have a correlational relationship.
  • Lower risks often lead to higher potential returns.

    • Which investment option is known for its low risk and less liquidity?

  • 32-Day Notice Accounts (correct)
  • Mutual Funds
  • Venture Capital
  • Managed Portfolios

    • What type of investment involves a high risk but potential for substantial returns by investing in startups?

  • Debentures
  • Government Bonds
  • Venture Capital (correct)
  • Endowments

    • What characteristic is often associated with government bonds?

    <p>Security but lower returns.</p> Signup and view all the answers

    What should an investor's choice of investment primarily align with?

    <p>Investor's financial goals, risk tolerance, and investment horizon</p> Signup and view all the answers

    Which of the following investment vehicles is designed for long-term wealth building with fixed returns?

    <p>Retirement Annuities</p> Signup and view all the answers

    What is a common risk associated with mutual funds and stokvels?

    <p>Fraud or mismanagement</p> Signup and view all the answers

    What should investors do for a deeper understanding of investment options?

    <p>Conduct extensive research and consult financial advisors</p> Signup and view all the answers

    What is the primary function of the Johannesburg Securities Exchange (JSE)?

    <p>To facilitate the trading of financial instruments</p> Signup and view all the answers

    Which type of investment offers the safest option for preserving capital while earning interest?

    <p>Government retail bonds</p> Signup and view all the answers

    What differentiates compound interest from simple interest?

    <p>Compound interest leads to exponentially growing returns</p> Signup and view all the answers

    Which investment type allows individuals to pool their money in a professional fund?

    <p>Mutual funds</p> Signup and view all the answers

    What key factors should be considered when making investment decisions?

    <p>Return on investment and associated risks</p> Signup and view all the answers

    Which type of shares typically does not confer a voting right to shareholders?

    <p>Preference shares</p> Signup and view all the answers

    What is the main goal of business investments?

    <p>To acquire shares and influence business decisions</p> Signup and view all the answers

    What term refers specifically to the income generated from owning shares?

    <p>Dividend</p> Signup and view all the answers

    What is a key advantage of managed portfolios in investment?

    <p>They are managed by professionals, providing diversification.</p> Signup and view all the answers

    Which investment option is characterized by lower liquidity?

    <p>32-Day Notice Accounts</p> Signup and view all the answers

    What is a significant risk associated with venture capital investments?

    <p>High potential returns with increased risk.</p> Signup and view all the answers

    How do debentures compare to other investment types?

    <p>They are fixed-interest securities generally considered low-risk.</p> Signup and view all the answers

    What should an investor primarily focus on when choosing an investment opportunity?

    <p>Aligning the investment with financial goals and risk tolerance.</p> Signup and view all the answers

    What feature of government bonds typically affects their attractiveness?

    <p>They provide security with lower potential returns.</p> Signup and view all the answers

    Which investment strategy is recommended for individuals seeking to build wealth over time?

    <p>Focus on long-term options like endowments and retirement annuities.</p> Signup and view all the answers

    What is essential for navigating complexities in financial markets?

    <p>Consideration of ROI, risk, and economic indicators.</p> Signup and view all the answers

    What is the primary benefit of investing in unit trusts?

    <p>They enable pooling of resources for professional management.</p> Signup and view all the answers

    Which factor is least important when evaluating the return on investment (ROI)?

    <p>Material value of the investment</p> Signup and view all the answers

    What distinguishes venture capital from other types of investments?

    <p>It involves direct investments in early-stage startups.</p> Signup and view all the answers

    Which of the following provides a low-risk investment option with fixed returns?

    <p>Government retail bonds</p> Signup and view all the answers

    What is the primary role of the Johannesburg Securities Exchange (JSE)?

    <p>To allow trading of various financial instruments.</p> Signup and view all the answers

    Why are dividends considered an essential aspect of investment income?

    <p>They provide periodic income from owning shares.</p> Signup and view all the answers

    Which of the following best describes compound interest?

    <p>Interest on interest, leading to exponential growth.</p> Signup and view all the answers

    Which of these types of shares typically allows for voting rights?

    <p>Ordinary shares</p> Signup and view all the answers

    What is a characteristic of venture capital investments?

    <p>They are associated with investing in startups or expanding businesses.</p> Signup and view all the answers

    What type of investment is generally considered to have lower liquidity?

    <p>Endowments/Retirement annuities</p> Signup and view all the answers

    Which of the following describes the impact of government bonds?

    <p>They are security instruments with low returns.</p> Signup and view all the answers

    What aspect is crucial for understanding investments in mutual funds and stokvels?

    <p>They can be influenced by mismanagement or fraud.</p> Signup and view all the answers

    Which characteristic is associated with managed portfolios?

    <p>They provide diversified investments managed by professionals.</p> Signup and view all the answers

    How does risk tolerance influence investment decisions?

    <p>It helps align investments with personal comfort levels regarding potential losses.</p> Signup and view all the answers

    What factor is essential for navigating the investment environment successfully?

    <p>Understanding ROI, risk, and economic conditions</p> Signup and view all the answers

    What is a common misconception about fixed-interest securities like debentures?

    <p>They are considered low-risk investments offering predictable returns.</p> Signup and view all the answers

    What differentiates unit trusts from direct business investments?

    <p>Unit trusts allow individual investors to own shares in multiple companies.</p> Signup and view all the answers

    Which type of investment is characterized by the opportunity to earn fixed returns with lower risk?

    <p>Government retail bonds</p> Signup and view all the answers

    What is one major factor that influences an investor's return on investment (ROI)?

    <p>The inflation rate during the investment term</p> Signup and view all the answers

    Which of the following types of shares typically provides shareholders with no voting rights?

    <p>Preference shares</p> Signup and view all the answers

    What is a significant advantage of investing in managed portfolios compared to individual stocks?

    <p>They facilitate diversification across various asset classes.</p> Signup and view all the answers

    What are dividends primarily associated with in terms of investment income?

    <p>Income generated from owning shares in a company</p> Signup and view all the answers

    Which component is crucial for evaluating the risk associated with an investment opportunity?

    <p>The historical performance of similar investments</p> Signup and view all the answers

    What is a common misconception about compound interest compared to simple interest?

    <p>Compound interest is calculated only on the principal amount.</p> Signup and view all the answers

    What distinguishes unit trusts from direct business investments in terms of management?

    <p>Unit trusts are professionally managed funds, whereas direct investments require investors to make their own decisions.</p> Signup and view all the answers

    Which factor is most crucial when assessing the suitability of a government retail bond as an investment option?

    <p>The fixed interest rate offered by the bond relative to inflation.</p> Signup and view all the answers

    How is compound interest significantly more beneficial than simple interest for long-term investments?

    <p>It can generate returns on both the principal and previously earned interest.</p> Signup and view all the answers

    Which aspect most significantly differentiates venture capital from mutual funds?

    <p>Venture capital involves direct investment in startups, while mutual funds pool investor money for broader investment.</p> Signup and view all the answers

    What primary consideration should guide an investor when evaluating the trade-off between risk and return?

    <p>The investor's personal goals, risk tolerance, and investment horizon.</p> Signup and view all the answers

    Which type of shares typically provides shareholders with the least voting power?

    <p>Preference shares.</p> Signup and view all the answers

    What is the primary advantage of compound interest over simple interest in a business investment strategy?

    <p>Compound interest leads to larger cumulative investment returns over time.</p> Signup and view all the answers

    In investment terms, what is the primary focus of assessing liquidity?

    <p>The ease and speed at which an investment can be converted to cash.</p> Signup and view all the answers

    Why is understanding risk tolerance essential for investment decisions?

    <p>It aligns investment choices with personal financial goals.</p> Signup and view all the answers

    Which of the following investment options is characterized by higher potential returns but carries significant risk?

    <p>Venture Capital</p> Signup and view all the answers

    What distinguishes managed portfolios from mutual funds/stokvels?

    <p>Managed portfolios are professionally managed and diversified.</p> Signup and view all the answers

    What is a characteristic advantage of investing in debentures compared to stocks?

    <p>Debentures provide fixed returns with lower risk.</p> Signup and view all the answers

    Considering investment types, what is the main disadvantage of 32-Day Notice Accounts?

    <p>They have limited access to funds due to notice requirements.</p> Signup and view all the answers

    What common misconception might investors have regarding government bonds?

    <p>Government bonds are always risk-free.</p> Signup and view all the answers

    Which aspect most influences the choice between an aggressive or conservative investment strategy?

    <p>Personal risk tolerance and financial goals.</p> Signup and view all the answers

    What is a significant risk factor associated with the investment in mutual funds/stokvels?

    <p>High expense ratios affecting overall returns.</p> Signup and view all the answers

    More Quizzes Like This

    Business Studies June Exam P2 (Medium)
    213 questions

    Business Studies June Exam P2 (Medium)

    GreatestTiger avatar
    GreatestTiger
    Business Studies June exam P2 (Hard)
    212 questions

    JSE Business Studies June Exam P2 Quiz and Flashcards

    GreatestTiger avatar
    GreatestTiger
    Business Studies June exam P2 (Mix)
    238 questions

    Business Studies June exam P2 (Mix)

    GreatestTiger avatar
    GreatestTiger
    Ch 3: Investment Securities/Opportunities
    64 questions

    Ch 3: Investment Securities/Opportunities

    GreatestTiger avatar
    GreatestTiger
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser