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Wk 7 Exit Ticket 3.6, 3.7, & 3.8
By Tang Xiong
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Last updated about 4 hours ago
10 questions
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Question 1
1.
When talking about investing, what does it mean when someone refers to a
fund
?
A pool of money from shareholders that is used to invest in a collection of assets like stocks and bonds
A type of savings account that you can use for emergency expenses
A way to crowdsource money from people online to help pay for an expense
An amount someone has in their checking account
Question 2
2.
The goal of an actively managed fund is to outperform the market. What does this mean?
The fund invests only in low-risk assets to minimize losses.
The fund guarantees a fixed return regardless of market conditions.
The fund seeks to generate higher returns than a specific market index or average.
The fund aims to match the performance of a benchmark index.
Question 3
3.
All of the following are true about a passively managed fund EXCEPT:
It requires less frequent trading and management.
It frequently buys and sells securities to capitalize on market fluctuations.
It aims to replicate the performance of a specific market index.
It typically has lower management fees compared to actively managed funds.
Question 4
4.
What does it mean when someone says “Good investing is boring”?
The best investments are always in the latest trends and technologies.
Investing should be a high-risk, high-reward activity to be considered successful.
Successful investing requires constant trading and excitement.
Long-term investment strategies often involve minimal activity and steady growth.
Question 5
5.
All of the following are recommended strategies for beginner investors EXCEPT:
Setting clear financial goals and a time horizon.
Investing solely in high-risk stocks for quick returns.
Educating oneself about investment options and market trends.
All of the following are recommended strategies for beginner investors EXCEPT:
Question 6
6.
Which of the following is a characteristic of a brokerage account?
It requires a minimum balance to maintain.
It offers guaranteed returns on investments.
It allows investors to buy and sell a variety of investment products, including stocks and bonds.
It is only available to professional investors.
Question 7
7.
Which of the following best describes an actively managed mutual fund?
It typically has no management fees due to passive investment strategies.
It only invests in government bonds and cash equivalents.
It is managed by a team of professionals who make investment decisions to outperform the market.
It seeks to replicate the performance of a specific market index.
Question 8
8.
Which of the following is a key characteristic of Exchange-Traded Funds (ETFs)?
They can only be bought and sold at the end of the trading day.
They usually have lower expense ratios compared to actively managed mutual funds.
They are not traded on stock exchanges.
They provide fixed income similar to bonds.
Question 9
9.
Which of the following best explains the investment strategy of a Target Date Fund?
The fund is designed to only invest in domestic equities and bonds, regardless of the target date.
The fund aims to maximize returns by investing primarily in high-risk assets until the target date, at which point it reallocates entirely to cash.
The fund adjusts its asset mix over time, becoming increasingly conservative as it approaches the target date, typically reducing equity exposure and increasing fixed-income holdings.
The fund maintains a static allocation across various asset classes regardless of the market environment.
Question 10
10.
Which of the following is the correct sequence of steps to open a brokerage account?
Complete application → Research brokers → Start trading → Deposit funds
Research brokers → Complete application → Deposit funds → Start trading
Research brokers → Deposit funds → Complete application → Start trading
Deposit funds → Research brokers → Complete application → Start trading