Principles of Investment

Question 1

What are some characteristics of short-term investments? Check all that apply.They usually last for less than a year.They are considered low risk.They typically include both stocks and bonds.They typically help investors save for retirement. They can include savings accounts and CDs.

Revolt · Accepted Answer

A: They usually last for less than a year.; B: They are considered low risk.; E: They can include savings accounts and CDs.

Question 2

Long-term investments tie up money for .

Revolt · Accepted Answer

A: more than one year

Question 3

Which investment options should Angela consider?

Revolt · Accepted Answer

D: CDs

Question 4

Which investment practice is Cody following?

Revolt · Accepted Answer

C: diversifying investments

Question 5

Understanding the likelihood of failure is part of understanding the .

Revolt · Accepted Answer

B: risks

Question 6

One reason why individuals focus on long-term investments is to .

Revolt · Accepted Answer

B: save for their retirement

Question 7

Which investment shortcoming has he failed to avoid?

Revolt · Accepted Answer

A: focusing on sunk costs

Question 8

A(n) allows both employees and employers to contribute to a retirement account.

Revolt · Accepted Answer

B: 401(k)

Question 9

Which step should Cody take to improve his investment portfolio?

Revolt · Accepted Answer

A: sell the failing stock

Question 10

If Cody sold all his stocks and put the total amount in an account with 5% interest, in how many years would his money double?

Revolt · Accepted Answer

A: about 14 years

Principles of Investment Answers

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