Wk 8 Exit Ticket 3.9, 3.10, 3.11, 3.12 - Tang Xiong | Knihovna

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2

What is often considered one of the biggest limitations of robo-advisors compared to human financial advisors?

Higher risk of human error in investment decisions

Less frequent portfolio adjustments

Difficulty in providing tailored advice for complex situations

Limited availability of low-cost investment options

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2

Which describes the primary method a spare-change app uses to grow your investment portfolio?

It invests leftover funds from rounding up each purchase to the nearest dollar.

It sets a fixed percentage of your income to be automatically invested.

It lets you manually choose which small stocks to invest in each month.

It analyzes your spending habits and invests based on discretionary income.

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2

All of the following are advantages of a 401(k), EXCEPT…

Employer matching contributions to your retirement savings.

High liquidity allowing easy access to funds anytime.

Tax-deferred growth on your investments until withdrawal.

Automatic payroll deductions that simplify saving.

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2

401(k)s and IRAs are both…

Retirement savings accounts that offer tax advantages.

Investment accounts primarily used for real estate.

Types of savings accounts with no contribution limits.

Government-funded retirement plans for all citizens.

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2

In retirement, it’s common to rely on income from all of the following sources EXCEPT...

Social Security benefits

Student loans

Personal savings and investments

Employer-sponsored pension plans

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2

Which of the following statements is TRUE about the state of retirement in the U.S.?

The average retirement age is steadily increasing due to longer life expectancy.

Most Americans rely solely on Social Security for their retirement income.

The majority of retirees have adequate savings to maintain their pre-retirement lifestyle.

All employers are required to offer retirement plans to their employees.

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2

Ben is planning ahead for retirement. They should consider all of the following factors when determining how much they’ll need in retirement EXCEPT…

Expected lifestyle changes

The color of their future home

Personal savings habits

Estimated healthcare costs

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2

Which of the following is an example of insider trading?

A financial analyst issues a report on a company’s performance without having any insider knowledge.

An employee of a corporation sells shares based on confidential information about an upcoming merger.

A company executive buys stock after the company publicly announces strong earnings.

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2

What is one difference between short and long-term capital gains tax?

Short-term capital gains apply to assets held for over one year, while long-term applies to assets held for less than one year.

Long-term capital gains are taxed on all profits, while short-term capital gains are only taxed on profits above a certain threshold.

Short-term capital gains have no tax implications, while long-term capital gains are always taxed at a flat rate.

Short-term capital gains are taxed at the same rate as ordinary income, while long-term capital gains are taxed at lower rates.

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2

The real rate of return on an investment would allow an investor to…

Measure the total return of an investment without factoring in risk.

Determine how much profit is made after accounting for inflation.

Compare returns on investments without considering taxes.

Assess the performance of an investment without considering inflation.