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Quiz: Introduction To Investing

Have you or are you studying finance, economics, investing or banking on a regular basis and how much information do you recall from the study? Take this quiz if you want to refresh your memory on investing.

  • Question of

    The relatinoship between risk and return in investing can be stated as:

    • Higher risk indicates lower return
    • Higher risk indicates higher return
    • Lower risk indicates higher return
    • No relationship exists between risk and return
  • Question of

    A diversified portfolio is desirable because it:

    • Increases the risk/return ratio
    • Limits investors choices to only one or two investment tools
    • Indicates an investor is a good predictor of the return an investment will have
    • Decreases risk by investing money in a variety of investment tools
  • Question of

    Which of the following is true in regards to investing in stock?

    • A stock investor may or may not receive a profit
    • A stock investor may receive a dividend
    • A stock investor owns a part of a company
    • All of the above
  • Question of

    What is a bond?

    • A type of debt that a company issues to investors for a specified amount of time
    • A share of ownership in a company
    • A type of investment that is only offered by depository institutions
  • Question of

    The value of a stock can change when:

    • Dollar value of a stock increases or decreases
    • A stock split occurs
    • A merger happens between two companies
    • All of the above

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Written by motiva8

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