3.6 Investment Strategies Answers

9 verified answers
1
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A
rates
B
returns
C
risks
D
rewards
2
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Which of these are considered both short- and long-term investments? Select four options.CDsstockssavings accountsmutual fundsbondscommodities

A
CDs
B
stocks
C
savings accounts
D
mutual funds
E
bonds
F
commodities
4

Which are common mistakes people make when investing? Choose four answers.They put all of their money into one kind of investment at a time. They divide their funds between more risky and less risky options.They analyze their comfort level with the types of risk they will take. They invest more money than they can afford.They focus heavily on familiar investment opportunities. They hold onto investments longer than they should to recoup losses.

A
They put all of their money into one kind of investment at a time.
B
They divide their funds between more risky and less risky options.
C
They analyze their comfort level with the types of risk they will take.
D
They invest more money than they can afford.
E
They focus heavily on familiar investment opportunities.
F
They hold onto investments longer than they should to recoup losses.
5

People who make money investing in the stock market

A
get certain tax breaks.
B
should sell quickly to avoid taxes.
C
have to pay a fee to keep a stock.
D
must pay taxes on profits.
6

Who regulates markets where investments are traded?

A
individual investors
B
the federal government
C
corporate entities
D
financial institutions
7

Which investment has the least liquidity?

A
property
B
stocks
C
a savings account
D
a 401k
8

Which investor is making a common error?

A
an employee of a popular hardware store who invests only in that company’s stock
B
an employee of a popular software company who invests in many similar companies
C
someone who sells the slumping stock while they are still able to make a profit based on what they paid
D
someone who buys stock in both domestic and more risky international companies
9

Tina has $1,000 per year she can invest to save money for her future.Which option would allow the highest growth for Tina's investment?

A
Tina can start investing the whole amount this year at 5% interest.
B
Tina can start investing the whole amount this year at 7% interest.
C
Tina can start investing half of the amount two years from now at 5% interest.
D
Tina can start investing half of the amount two years from now at 7% interest.
10

Who regulates markets where investments are traded?

A
individual investors
B
the federal government
C
corporate entities
D
financial institutions

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