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Chapter 2 test

Dave Ramsey test 1-27-15

QuestionAnswer
Growth and Income Funds large-cap
always check this record when investing 5-10 year track record
spread around the risk diversification
piece of ownership in company stock share
list of your investments portfolio
least liquid of all investments rental real estate
degree of uncertainty of the return on an investment risk
Aggressive Growth Funds small-cap
savings account within an insurance company annuity
risk goes up, return goes up risk return ratio
true/false: Liquidity means to spread around and lower risk. false
true/false: A single stock is the best place to keep your emergency fund. false
true/false: A certificate of deposit is the best place to keep an emergency fund. false
true/false: Diversification lowers your risk with investing. true
true/false: Commodities and futures are extremely speculative and carry a high risk. true
____% of any 10-year period in the stock market has made money. 100%
Long-term investments properly diversified include the following mutual funds: growth, growth and income, international, aggressive growth
What is the KISS rule of investing? Keep It Simple Stupid
What are not good investments? gold, viaticals, futures
What statement is true about liquidity? the more liquid an investment, the less return
What is not a type of annuity? variable, stable, or fixed stable
A savings account with a certificate is a what? C.D.
What are some investments that don't give you a high rate of return? investing in gold, commodities, sometimes stocks
List four types of investments that you should always avoid. gold, commodities, viaticals, futures
How are single stocks different from mutual funds and which is the better investment? mutual funds because a single stock is putting all your eggs in one basket
Why do you look at the long-term track record with a mutual fund? You need to see if your investment is going up over the long-term
Know how to do a case study look over Dave Ramsey Chapter 2 booklet
Created by: a.allsup
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