Chapter 3: Navigating income and Careers Quiz

1 point(s)

Which of the following is NOT a reason people invest in stocks?

Capital appreciation

Correct Incorrect Correct answer

Dividends

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Diversification

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Guaranteed returns

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1 point(s)

Which term describes a situation where an investor borrows money to buy stocks?

Short selling

Correct Incorrect Correct answer

Margin trading

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Hedging

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Diversification

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1 point(s)

What is the primary goal of diversification in investing?

Maximizing returns

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Minimizing risk

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Increasing liquidity

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Reducing taxes

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1 point(s)

Retail investors typically have less access to information, research, and tools compared to institutional investors.

True

Correct Incorrect Correct answer

False

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1 point(s)

Dividends are always guaranteed payments to shareholders.

True

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False

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3 point(s)

Match the following terms with their correct definitions.

Sort elements

Initial public offering, a company's first sale of stock to the public
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders
The increase in value of an asset or investment above its purchase price

IPO	Correct Incorrect Correct answer

Dividend

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Capital Gain

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3 point(s)

Match the following investment strategies with their correct descriptions.

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Investing in stocks that are undervalued by the market
Investing in companies with high potential for growth
Investing in a portfolio that replicates the performance of a market index

Value Investing

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Growth Investing

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Index Investing

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1 point(s)

Arrange these types of financial instruments in ascending order of potential risk, starting with the lowest: Bonds, Cryptocurrencies, Stocks, Treasury Bills.

Correct Correct Answer Incorrect

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1 point(s)

Sort these investment objectives in order of priority for a conservative investor: Income, Capital Preservation, Growth.

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1 point(s)

What is one concept you found most interesting in this chapter and why?

This response will be reviewed and graded after submission.

0 point(s)

Chapter 3: Navigating income and Careers Quiz