Investment and D. Liquidity Question
Question 1 of 20
5.0 Points
Alicia Cooper makes sure to contribute ten percent of her monthly earnings to her 401(k) plan at work. Her 401(k) plan allows her to invest in several different types of mutual funds. Which suggestion for the obtaining money she needs for investing is she following?
A. Paying herself first
B. Taking advantage of employer-sponsored retirement programs
C. Participating in an elective savings program
D. Making a special effort once or twice a year to save
Question 2 of 20
5.0 Points
After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small children and wants to make sure that both she and the children are taken care of in the future. Based on this information, which of the investment factors listed below would be the most important to Gina in her investment program?
A. Liquidity
B. Safety
C. Business failure
D. Market risk
Question 3 of 20
5.0 Points
Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about?
A. Risk
B. Return
C. Diversification
D. Liquidity
Question 4 of 20
5.0 Points
An individual can reduce the amount of risk associated with an investment program by using:
A. an investment timer.
B. asset allocation.
C. a portfolio picker.
D. a personal investment notebook.
Question 5 of 20
5.0 Points
Which of the following statements is FALSE?
A. Investors often make the mistake of putting all of their "eggs in one basket."
B. Diversification in an investment portfolio is one way to lessen the risk factor.
C. The amount of time a specific investment has to work is of little importance when choosing the investment alternative.
D. Younger investors tend to invest a large percentage of
5.0 Points
Alicia Cooper makes sure to contribute ten percent of her monthly earnings to her 401(k) plan at work. Her 401(k) plan allows her to invest in several different types of mutual funds. Which suggestion for the obtaining money she needs for investing is she following?
A. Paying herself first
B. Taking advantage of employer-sponsored retirement programs
C. Participating in an elective savings program
D. Making a special effort once or twice a year to save
Question 2 of 20
5.0 Points
After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small children and wants to make sure that both she and the children are taken care of in the future. Based on this information, which of the investment factors listed below would be the most important to Gina in her investment program?
A. Liquidity
B. Safety
C. Business failure
D. Market risk
Question 3 of 20
5.0 Points
Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about?
A. Risk
B. Return
C. Diversification
D. Liquidity
Question 4 of 20
5.0 Points
An individual can reduce the amount of risk associated with an investment program by using:
A. an investment timer.
B. asset allocation.
C. a portfolio picker.
D. a personal investment notebook.
Question 5 of 20
5.0 Points
Which of the following statements is FALSE?
A. Investors often make the mistake of putting all of their "eggs in one basket."
B. Diversification in an investment portfolio is one way to lessen the risk factor.
C. The amount of time a specific investment has to work is of little importance when choosing the investment alternative.
D. Younger investors tend to invest a large percentage of