Questions 1-5 are True or False. Choose the correct definitions: 1. Investment *
An investment is the purchase of an asset with an expectation of receiving more money than what you paid for it.
2. Investment Returns *
An investment return is the profit or loss you have on your investments, including income received and change in value.
3. Expected Return *
An expected return is the return you are guaranteed when an initial investment is made.
4. Hard Assets / Alternatives *
Hard assets are assets that are cash, stocks, or bonds. Ex: Real estate, precious metals, oil & gas, commodities, foreign currencies, hedge funds
5. Mutual Fund *
A mutual fund is a professionally managed investment that pools money from many investors to invest in a variety of securities.
Questions 6-9 are multiple choice: 6. Risk *
Which of these is not a form of risk?
7. Cash Account *
Select all of the benefits of a cash account:
8. Stock *
A stock is a type of security/investment that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. Which of the following is not a type of stock?
9. Bonds *
A bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time. This borrowed money is used by companies and governments to finance a variety of projects and activities. Which of the following is not a bond?