Investment and Risk Management
12 Questions
1 Views

Investment and Risk Management

Created by
@AltruisticCuboFuturism

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary objective of investing consistently, regardless of the stock market conditions?

  • To maximize returns
  • To reduce overall risk
  • To free oneself from worrying about when to invest (correct)
  • To diversify investments

    • What type of investment is characterized by ownership or indebtedness of a business?

  • Security (correct)
  • Derivative
  • Property investment
  • Direct financial asset

    • What type of risk arises from the proportion of borrowed money relative to assets and profits?

  • Financial risk (correct)
  • Market risk
  • Business risk
  • Liquidity risk

    • What type of investment matures within twelve (12) months?

    <p>Short-term investment</p> Signup and view all the answers

    What option reduces the risks of investing by spreading investments across various asset classes?

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

    What type of risk arises from the possibility that a country will experience political or economic instability?

    <p>Country risk</p> Signup and view all the answers

    What is the main objective of investment risk management?

    <p>To protect and grow assets through diversification</p> Signup and view all the answers

    Which investment objective focuses on financing a long-term goal?

    <p>Money Growth</p> Signup and view all the answers

    What is the outcome gained from an investment?

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

    What is the strategy of minimizing risk by investing in various asset classes?

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

    What is an increase in the value of an asset?

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

    Why do some people invest in low-risk assets?

    <p>To safekeep their money with minimal risk</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser