Test Flashcards
7 cards from real Investment practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Test flashcards as text
What does the P/E ratio measure?
Answer: Price relative to earnings per share
The P/E ratio compares a stock's price to its earnings per share.
Which investment is generally considered the safest in the US?
Answer: US Treasury securities
US Treasury securities are backed by the federal government and considered safest.
What is dollar-cost averaging?
Answer: Investing a fixed amount at regular intervals
Dollar-cost averaging invests a fixed amount at regular intervals regardless of price.
A stock has a beta of 1.5. If the market rises 10%, what is the expected move?
Answer: Up 15%
Beta of 1.5 means the stock is expected to move 1.5x the market, or 15%.
What is an ETF?
Answer: An exchange-traded fund
ETF stands for exchange-traded fund, traded like a stock on an exchange.
Which of these is a characteristic of preferred stock?
Answer: Priority over common stock for dividends
Preferred stockholders receive dividends before common stockholders.
What does liquidity refer to in investing?
Answer: How quickly an asset can be converted to cash
Liquidity is how easily an asset can be converted to cash without affecting its price.