Quiz # 11

The Fundamentals of Investing

Name: MITZCHELL LEI T. DELA CRUZ

Course/Year/Block: BSBA HRM 4-1

I. Multiple Choice
1. It is the likelihood that you'll lose some or all the money you've invested. This can be due to your
investment falling in value or not performing how you expected.
a. Financial goals c. Stocks
b. Investment risk d. Finances
2. This provides an overall indication of the portfolio’s performance.
a. Yield c. Performance Evaluation
b. Rate of Return d. Portfolio
3. It refers to the amount of time an investor can expect to hold a specific investment.
a. Liquidity c. Asset Class
b. Time Horizon d. International Market
4. Investors use it as one of the essential components of each investment decision, as well as to assess
their portfolios as a whole.
a. Risk-Return Trade-off c. International Market
b. Investment Plan d. Performance Evaluation
5. It is also known as shares or equities. It is the most well-known and simple type of investment.
a. Bonds c. Stocks
b. Mutual funds d. Annuities
6. Traditional investments include the following, except:
a. Stocks c. Cash
b. Real Estate d. Bonds
7. It is a pool of many investors’ money that is invested broadly in a number of companies. It can be
actively managed or passively managed.
a. Stocks c. Annuities
b. Bonds d. Mutual funds
8. What is the formula of Risk-Return Trade-off?
a. Expected Value = PA/Value of Outcome A + PB/Value of Outcome B
b. Expected Value = PA x Value of Outcome A - PB x Value of Outcome B
c. Expected Value = PA x Value of Outcome A + PB x Value of Outcome B
d. Expected Value = PA x Value of Outcome A - PB/Value of Outcome B
9. It is the level of risk you’re willing to accept when making investments.
a. Risk Capacity c. Risk and Return
b. Risk Tolerance d. Liquidity Risk
10. It is the level of risk you need to take to achieve your investment goals.
a. Risk Capacity c. Risk and Return
b. Risk Tolerance d. Liquidity Risk

II. Enumeration (2 points each)

1. List five (5) investment choices
a. OPTIONS
b. ANNUITIES
c. BONDS
d. STOCKS
e. COMMODITIES

2. To find the right investments, you need to think about:

a. TIME FRAME
b. ACCES TO CASH
c. TAX
d. RETURN
e. COST BUY AND SELL
f. RISK