5 Written questions
5 Matching questions
- large-cap fund
- a account or arrangement in which one would put their money for long-term growth; should not be withdrawn for a suggested minimum of five years.
- b to spread around one's investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk.
- c funds comprised of large, well-established companies.
- d purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss.
- e quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money; when there is more liquidity, there is typically less return.
5 Multiple choice questions
- pool of money managed by an investment company and investment company and invested in multiple companies, bonds, etc.; offers investors a variety of goals depending on the fund and its investment charter; often used to generate income on a regular basis or to preserve an investor's money; sometimes used to invest in companies that are growing at a rapid pace.
- degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
- mutual fund that seeks to provide max. long-term capital growth from stocks of primarily smaller companies or narrow market segments; dividend income is incidental; the most volatile fund; also referred to as a small-cap fund.
- mutual fund that seeks to maintain a stable share price and to earn current income by investing in interest-bearing instruments with short-term (usually 90 days or less) maturities.
- buying real estate to rent out as an investment.
5 True/False questions
risk return ratio → relationship of substantial reward in comparison to the amount of risk taken.
portfolio → a food, metal, or fixed physical substance that investors buy or sell, usually via future contracts.
bond → degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
growth stock mutual fund → fund that buys stock in medium-sized companies that have experienced some growth and are still expanding; also called a mid-cap fund.
C.D. → degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.