Practice Test Answers

25 verified answers

Part B: Why does this matter?

Fees increase growth

Fees reduce risk

Lower costs increase net returns

Costs eliminate taxes

Part A: Which investment fits a long-term, high-risk strategy?

cash holdings

diversified stock portfolio

savings account

short-term bond

Part B: Why is this appropriate?

allows recovery from volatility

guarantees returns

eliminates losses

avoids uncertainty

Part A: Which tool reduces the number of decisions an investor must make?

Discount broker

Bank account

Robo-advisor

Trading platform

Part B: What is the main benefit of this feature?

Eliminates cost

Guarantees returns

Increases risk

Reduces emotional decisions

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