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Investing and Building Wealth quiz

14 questions on Investing and Building Wealth, graded instantly with an explanation for every answer. Free and no sign-up — your best score is saved on this device. Want to study first? Read the Investing and Building Wealth lessons.

Investing and Building Wealth — Module Assessment

14 questions · pass mark 75%

  1. 1.Money you will need to spend in eighteen months is best matched to which asset class, and why?
  2. 2.What is the 'quiet' risk of holding wealth entirely in cash?
  3. 3.According to S&P's long-running SPIVA scorecards, what tends to happen to most actively managed funds over long periods?
  4. 4.What does diversification reliably protect against, and what does it not?
  5. 5.Using the Rule of 72, roughly how long does money take to double at an illustrative 6% annual return?
  6. 6.Why do the earliest years of a long-term investment tend to matter most?
  7. 7.Two identical illustrative portfolios differ only in annual fee, 0.1% versus 1.0%, over 30 years. What is the likely effect?
  8. 8.In general terms, what best describes a tax-advantaged retirement account?
  9. 9.What does the "behaviour gap" refer to?
  10. 10.According to the prospect theory of Kahneman and Tversky, how do people typically weigh losses against equivalent gains?
  11. 11.Insurance is best described as…
  12. 12.Which of these losses is the best candidate for insurance rather than self-funding?
  13. 13.In the classic priority order, what should generally come before investing for long-term goals?
  14. 14.As a long-term goal draws near, how does asset allocation typically shift?
Answer every question to submit.