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Chapter 2 test
Dave Ramsey test 1-27-15
Question | Answer |
---|---|
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 |