Choose wisely. There is only one correct answer to each question.
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1.
Which type of bond is most like a stock?
Convertible bond. Convertible bonds can be, as their name suggests, converted into stocks. Because of this conversion feature, convertibles behave very much like stocks. They are generally less volatile than stocks, though, because they pay a fixed coupon (or yield).
2.
Emerging-market stocks live up to their promise.
False. Although these stocks can be considered aggressive, often the emerging nations behind them have a lot of challenges to overcome. It remains to be seen just how promising they are.
3.
How aggressive you should be with your investments depends on what?
Your investment goal, your investment horizon, and your ability to handle volatility. Your goal, time horizon, and volatility tolerance should all help determine how aggressive your portfolio is.
4.
Stocks from which nation would be considered emerging-market stocks?
Nigeria. Emerging-market stocks are those of developing nations.
5.
Which of the following groups of stocks provides the most opportunity for growth?
Small-company stocks. As a general rule, smaller companies are growing faster than medium or large companies.
