2. Saving and Investing

Investment Basics — Quiz

Test your understanding of investment basics with 5 practice questions.

Practice Questions

Question 1

Which fee is charged when you redeem shares in a load mutual fund?

Question 2

Diversification in an investment portfolio primarily reduces which type of risk?

Question 3

In a portfolio allocating 60% to stocks with expected return 8% and 40% to bonds with expected return 3%, what is the portfolio’s expected return?

Question 4

If a stock pays a 2% dividend yield and its price appreciates by 5% over one year, what is the total return?

Question 5

For two uncorrelated assets with standard deviations 10% and 20% and equal weights, what is the portfolio standard deviation?