Investment Risk Assessment and Analysis Quiz
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Questions and Answers

What is the primary goal of value investors?

  • Achieving market returns by tracking broad market indices
  • Investing in quality assets at discounted prices for significant gains (correct)
  • Taking on high levels of risk for short-term gains
  • Actively managing investments through market analysis

Which investment approach involves seeking to achieve market returns by tracking broad market indices?

  • Speculative investing
  • Passive investing (correct)
  • Value investing
  • Active investing

What distinguishes active investors from passive investors?

  • Prefer low-cost investment vehicles like index funds
  • Seek short-term gains through speculative trading
  • Actively make decisions based on investment analysis (correct)
  • Employ fundamental analysis techniques to identify bargains

Which type of investor is most likely to engage in day trading or options trading?

<p>Speculative investor (C)</p> Signup and view all the answers

What is a common characteristic of passive investors?

<p>Prefer low-cost diversified investment vehicles like index funds (D)</p> Signup and view all the answers

Which group of investors aims to generate alpha and beat the market through various strategies?

<p>Active investors (B)</p> Signup and view all the answers

What is one of the main goals that investors have when investing in an investment program?

<p>Ensuring financial independence (C)</p> Signup and view all the answers

Why is insurance considered important in financial planning for families?

<p>To provide financial protection in case of emergencies (D)</p> Signup and view all the answers

What is one of the disadvantages of investing in insurance compared to other lucrative investment programs?

<p>Relatively low return rates (C)</p> Signup and view all the answers

Why is having a reserve fund important for individuals?

<p>To meet unexpected needs in the future (A)</p> Signup and view all the answers

What does diversification aim to achieve in an investment portfolio?

<p>Maintaining the original value of the investment (C)</p> Signup and view all the answers

Why should an investment program be readily marketable?

<p>For liquidity of portfolios (A)</p> Signup and view all the answers

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