Investment Types and Options
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Investment Types and Options

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@IrreproachableGuitar

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Questions and Answers

What is the primary purpose of an investment according to the investor?

  • To diversify a portfolio
  • To minimize risk
  • To speculate on market fluctuations
  • To generate income and accumulate wealth (correct)

    • What type of investment typically earns a fixed interest rate and is issued by a government or company?

  • Shares of Stocks
  • Managed Funds
  • Time Deposit
  • Investment in Bonds (correct)

    • Which type of risk is almost impossible for an investor to avoid?

  • Unsystematic Risk
  • Credit Risk
  • Market Risk
  • Systematic Risk (correct)

    • What type of investment involves buying a small part of a company?

    <p>Investment in Shares of Stocks</p> Signup and view all the answers

    What is the purpose of a managed fund?

    <p>To pool money from various investors and invest in bonds, stocks, or a combination of investments</p> Signup and view all the answers

    What is the maximum amount insured by PDIC for bank investments?

    <p>P500,000</p> Signup and view all the answers

    What is an example of an event that can affect a company's investment?

    <p>A firm whose employees went on strike</p> Signup and view all the answers

    What is the purpose of determining one's risk tolerance?

    <p>To understand the type of risk and minimize it</p> Signup and view all the answers

    What is conducting due diligence about?

    <p>Making research about the investment instruments</p> Signup and view all the answers

    What is the purpose of diversification in an investment portfolio?

    <p>To minimize unsystematic risk</p> Signup and view all the answers

    How often should an investor evaluate their investment holdings?

    <p>At least once a year</p> Signup and view all the answers

    What is the benefit of investing in government-guaranteed investment products?

    <p>Full backing by the Philippine government</p> Signup and view all the answers

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