Investment Jobs Investment Strategy Test 3

Question 1

An investor with a 30-year horizon and high risk tolerance should generally weight toward:

Accepted Answer

Equities for long-term growth

Answer

Short-term Treasury bills

Answer

Money market funds only

Answer

Certificates of deposit

Question 2

What is the main risk of a concentrated portfolio?

Accepted Answer

Outsized losses if one holding underperforms

Answer

Excessive diversification

Answer

Guaranteed lower returns

Answer

No exposure to the market

Question 3

A growth investing strategy emphasizes companies with:

Accepted Answer

Above-average earnings growth potential

Answer

Stagnant revenues and high dividends

Answer

Heavy debt and no expansion

Answer

Only mature utility profiles

Question 4

Asset allocation refers to:

Accepted Answer

Dividing investments among asset classes like stocks, bonds, and cash

Answer

Choosing individual stock tickers only

Answer

Timing daily market moves

Answer

Selecting a brokerage firm

Question 5

Which metric measures a stock's volatility relative to the overall market?

Accepted Answer

Beta

Answer

Alpha

Answer

P/E ratio

Answer

Dividend yield

Question 6

A laddered bond strategy is designed to:

Accepted Answer

Stagger maturities to manage interest rate and reinvestment risk

Answer

Concentrate all bonds at one maturity

Answer

Avoid all fixed income

Answer

Maximize leverage

Question 7

Tax-loss harvesting is used to:

Accepted Answer

Offset capital gains by realizing losses

Answer

Increase taxable gains intentionally

Answer

Avoid filing taxes

Answer

Boost dividend payments