Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
It is never smart to invest through a full-service broker.
False. Investors who do not want to put in the time or effort to research and manage their investments may find a full-service broker essential.
2.
Companies that do not pay dividends might be good growth investments.
True. Often, companies do not pay dividends in order to funnel more profits into growth.
3.
The greater potential return that investments offer in return for accepting greater risk is called ________.
Risk premium. This is the "reward" for taking on risk.
4.
Investors diversify to reduce the risks of different business trends.
True. Diversifying helps them avoid any particular trend affecting their investments too much.
5.
A reasonably intelligent person who studies the tax code from time to time can probably make good decisions about how to shelter investment income from taxes.
False. Even the simplest workplace retirement plan can have tax implications that require expert advice.