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Quiz by Edna Cruz

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5 questions
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  • Q1

    1.          Which statement is true about risks?

    D. Both A and B

    C. None of the above

    A. Risks are present in all types of investment.

    B. An investor can select investments with minimum risks.

  • Q2

    2. What kind of investment is said to have higher returns?

    A. low risk

    B. risk free

    D.  average risk

    C.  high risk

  • Q3

    3. Which is true about the risk-return trade-off?

    C.          It is the concept of low-risk-high-return.

    D.          All of the above

    B.  The riskier the investment is, the more an investor expects a high return or profit.

    A.          An investor will never accept losses in an investment.

  • Q4

    4.    Which of the following is a conservative type of investor?

    C.          Invests all resources in the online selling business

    D.          Does not invest at all

    B.          Invests all resources in the stock market

    A. Invests all resources in a time deposit

  • Q5

    5.    What is investment diversification?

    A.         investments with high profit

    B.          investments with no risks

    D.          investments with low risks

    C.          investments from different profit-making activities


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