Be sure to have completed the lessons for the Unit required for this exit ticket.
Be sure to have completed the lessons for the Unit required for this exit ticket.
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Question 2
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Question 3
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Question 4
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Question 5
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Question 6
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Question 7
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Question 8
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Question 9
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Which of the following most accurately describes what a bond is?
A bond is a government loan made to a corporation that must be paid back with interest.
A bond is an investment in which a corporation lends an individual investor money that must be paid back with interest.
A bond is an investment in which an investor lends money to a corporation or government and it must be paid back with interest.
A bond is a government loan made to an individual investor that must be paid back with interest.
Juan buys a bond with a fixed coupon rate of 3%. Six months later, similar bonds that are issued have a coupon rate of 4%. Which of the following is TRUE?
The price of Juan’s bond will increase
The interest rate of Juan’s bond will increase to reflect the current market
More investors will be willing to buy Juan’s bond
The price of Juan’s bond will decrease
One difference between bonds and bond funds is…
Bonds pay dividends to its investors
A bond fund can help you diversify your investment portfolio
You receive the principal amount you invest in a bond fund after a certain amount of time
Buying an individual bond is generally cheaper than buying a bond fund
All of the following are strategies to reduce risk EXCEPT
Hiring an investment manager who you think can beat the market
Investing small amounts of money over longer periods of time
Not selling your investments for at least five years
Making sure your investments are diversified
Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because
Fees are waived for investments held for over five years
It keeps you from reacting to dips in the market and selling at too low of a price
You get a bonus from the company if you invest for five years
It allows your investments to earn more interest
The following are examples of diversification (select all that apply)
Investing different amounts of money every month
Investing in multiple types of securities (stocks, bonds, etc.)
Investing in multiple companies within a type of security (ex: small, medium, and large cap stocks)
Using multiple investment managers to get different opinions
All of the following are true about a passively managed fund EXCEPT…
Fees for a passively managed fund are typically lower than those for an actively managed fund
Passively managed funds are managed by a fund manager
A passively managed fund guarantees the average return of the securities it includes
Passively managed funds are generally seen as low risk investments
How do exchange traded funds (ETFs) differ from actively managed mutual funds?
ETFs use a pool of money from multiple investors while actively managed mutual funds do not
ETFs can be traded throughout the day while actively managed mutual funds cannot
ETFs generally come with high fees while actively managed mutual funds do not
ETFs are generally seen as high-risk investments while actively managed mutual funds are not
Why might a target date fund be a good option for someone who wants a hands-off approach to investing?
Target date funds automatically adjust your asset allocation as you get to retirement
Target date funds only invest in low-risk bonds
Target date funds are actively managed by a fund manager
Target date funds offer low fees while also promising to outperform the market