Principles of Investment Answers

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1
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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.

A
They usually last for less than a year.
B
They are considered low risk.
C
They typically include both stocks and bonds.
D
They typically help investors save for retirement.
E
They can include savings accounts and CDs.
2
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Which investment shortcoming has he failed to avoid?

A
focusing on sunk costs
B
focusing on the familiar
C
not knowing his personality
3

Which step should Cody take to improve his investment portfolio?

A
sell the failing stock
B
try to take more risks
C
be more conservative
5

Which investment options should Angela consider?

A
stocks
B
commodities
C
mutual funds
D
CDs
6

Which investment practice is Cody following?

A
buying commodities
B
short-term investing
C
diversifying investments
7

What should investors consider when planning for their retirement? Check all that apply.the amount an employer will match for a 401(k)the contributions an employer will make to an IRAthe ideal age to establish a particular retirement planthe amount an investor is allowed to contribute annuallythe tax laws and breaks related to different retirement plansthe amount that can be withdrawn early without getting taxed

A
the amount an employer will match for a 401(k)
B
the contributions an employer will make to an IRA
C
the ideal age to establish a particular retirement plan
D
the amount an investor is allowed to contribute annually
E
the tax laws and breaks related to different retirement plans
F
the amount that can be withdrawn early without getting taxed

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