Investment Strategy Quiz



9 Questions

What is the purpose of investing?

What is the statistical effect of diversification?

What is the price-to-earnings ratio (P/E)?

What do growth investors seek profits through?

What is momentum investing?

What is dollar cost averaging?

What is micro-investing?

What does free cash flow measure?

What is the risk associated with savings?


Investment Strategies: A Comprehensive Overview

  • Investment is a commitment of resources to achieve later benefits.
  • The purpose of investing is to generate a return from the invested asset.
  • Investors generally expect higher returns from riskier investments.
  • Diversification has the statistical effect of reducing overall risk.
  • Savings bear the risk that the financial provider may default.
  • Property buyers can seek to mitigate any potential risk by taking out a mortgage and borrowing at a lower loan to security ratio.
  • The price-to-earnings ratio (P/E) is a fundamental ratio that divides the share price of the stock by its earnings per share.
  • Growth investors seek profits through capital appreciation.
  • Momentum investors generally seek to buy stocks that are currently experiencing a short-term uptrend.
  • Dollar cost averaging is the process of consistently investing a certain amount of money across regular increments of time.
  • Micro-investing is a type of investment strategy that is designed to make investing regular, accessible, and affordable.
  • Free cash flow measures the cash a company generates which is available to its debt and equity investors, after allowing for reinvestment in working capital and capital expenditure.


Test your knowledge on investment strategies with this comprehensive overview quiz! From diversification to dollar cost averaging, this quiz covers important concepts and strategies in investing. Whether you're a beginner or an experienced investor, this quiz will challenge your understanding of key investment principles. Sharpen your investing skills and learn something new with this informative quiz.

Ready to take the quiz?

Start Quiz