12 Questions
What is the primary goal of investment risk management?
to protect and grow assets by diversifying your investments, investing consistently, and investing for the long term
What is the purpose of diversification in investing?
to minimize the risk of loss by putting money in various asset classes
What is the objective of investing for safety of money?
to safekeep money with minimal risk of losing value and have it available when needed
What is the difference between capital gains and appreciation?
Capital gains refer to the profit made from selling an asset for more than its purchase price, while appreciation is an increase in the value of an asset
What is the objective of investing for income?
to have a source of income aside from wage and salary
What is the primary goal of investing for growth?
to finance a long-term goal
What type of investment is ideal for generating revenue?
Revenue-generating investments
What is the main advantage of diversification in investment?
Reducing the risks of investing
What is the primary difference between direct and indirect financial assets?
Direct financial assets are acquired directly from the company, while indirect financial assets are acquired through a financial intermediary
What is the main characteristic of a low-risk investment?
More secure and stable yields, but with lower returns
What is the primary difference between short-term and long-term investments?
Short-term investments mature within 12 months, while long-term investments mature longer than 12 months
What is the definition of liquidity risk?
Being unable to sell or liquidate an investment fast enough without lowering its price
Learn about investments, returns, and associated risks. Understand how to manage risks by diversifying investments in different asset classes. Test your knowledge on investments and risk management strategies.
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