Investment Strategies Answers

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1
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A
rates
B
returns
C
risks
D
rewards
2
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The images show what happened to two people who invested $1,000. Which investment advice would Gale most likely give to Alex?

Question illustration
A
Invest in stocks because they are less risky.
B
Put most of your money in a savings account instead.
C
Spread your investments in several different areas.
D
Stick with the stocks because they will bounce back.
3

Which are common mistakes people make when investing? Choose four answers.

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.

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