12 Questions
What is the primary objective of investing consistently, regardless of the stock market conditions?
To free oneself from worrying about when to invest
What type of investment is characterized by ownership or indebtedness of a business?
Security
What type of risk arises from the proportion of borrowed money relative to assets and profits?
Financial risk
What type of investment matures within twelve (12) months?
Short-term investment
What option reduces the risks of investing by spreading investments across various asset classes?
Diversification
What type of risk arises from the possibility that a country will experience political or economic instability?
Country risk
What is the main objective of investment risk management?
To protect and grow assets through diversification
Which investment objective focuses on financing a long-term goal?
Money Growth
What is the outcome gained from an investment?
Return
What is the strategy of minimizing risk by investing in various asset classes?
Diversification
What is an increase in the value of an asset?
Appreciation
Why do some people invest in low-risk assets?
To safekeep their money with minimal risk
Test your knowledge of investments, risks, and returns. Learn how to manage risks and diversify your portfolio with stocks, bonds, real estate, and cash.
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