Everfi Module 9 Investing Questions with Complete Answers

Everfi Module 9 Investing Questions with Complete Answers If an employer does not offer a retirement plan, what might be another way to save for retirement? D Both A and B What is the primary reason to issue stock? B to raise money for the company Which of the following would be considered the highest risk portfolio? C A portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds. Why is a high-quality bond typically considered a lower-risk investment than a stock? C A bond typically pays a fixed, predictable amount of interest each year. How can investors receive compounding returns? B By investing their earnings back into their original investment Which investment type typically carries the least risk? C Savings Accounts Diversification is important in investing because... A It helps you to balance your risk across different types of investments Generally speaking, the _______ the risk, the _______ the potential return or loss. B higher; higher Which of the following correctly orders the investments from LOWER risk to HIGHER risk? B Treasury bond − Diversified mutual fund - Stock Which best describes the difference between stocks and bonds? B Stocks allow investors to own a portion of the company; bonds are loans to the company. When might be the best time to start saving for retirement? C At the earliest possible date. Which of the following is generally true about 401(k) and 403(b) retirement plans? D All of the above Why might a town decide to issue bonds? B To build new roads or bridges.