Math of Money Unit 2 Lesson 6
Questions with answers.
What is a wise way to track investment performance? ANS -Compare performance over time with a
benchmark.
Which stock index tracks the performance of 30 large U.S. stocks? ANS -Dow Jones Industrial Average
One of the most important principles of investing is the ability to evaluate your tolerance for. ANS -risk
What is an underlying benefit of rebalancing one's portfolio on a regular basis? ANS -It typically reduces
risk and keeps an investor's plan on target.
investments in various assets reduces the risk that any one investment may pose to your overall
portfolio. ANS -Diversifying
by using____dips in prices become opportunities to gain a greater quantity of shares ANS -dollar-cost
averaging
An investment that has overperformed over time is more likely to underperform going forward. ANS -
True
Frequent trading generates paperwork and commission expenses. ANS -True
The up-and-down nature of the market makes frequent trading an ideal strategy. ANS -False; The
instability of the market makes frequent trading risky.
When you buy or sell, you should be able to clearly state why you are making the change. ANS -True
dollar-cost averaging ANS -investing small amounts over time to take advantage of
Questions with answers.
What is a wise way to track investment performance? ANS -Compare performance over time with a
benchmark.
Which stock index tracks the performance of 30 large U.S. stocks? ANS -Dow Jones Industrial Average
One of the most important principles of investing is the ability to evaluate your tolerance for. ANS -risk
What is an underlying benefit of rebalancing one's portfolio on a regular basis? ANS -It typically reduces
risk and keeps an investor's plan on target.
investments in various assets reduces the risk that any one investment may pose to your overall
portfolio. ANS -Diversifying
by using____dips in prices become opportunities to gain a greater quantity of shares ANS -dollar-cost
averaging
An investment that has overperformed over time is more likely to underperform going forward. ANS -
True
Frequent trading generates paperwork and commission expenses. ANS -True
The up-and-down nature of the market makes frequent trading an ideal strategy. ANS -False; The
instability of the market makes frequent trading risky.
When you buy or sell, you should be able to clearly state why you are making the change. ANS -True
dollar-cost averaging ANS -investing small amounts over time to take advantage of
