Essay on Investment and Certified Financial Planner

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FP/101_r6 - Week Eight Quiz| | | |1) Investing in the stock market is a good way to meet which of the following savings goals?||A.||A vacation next summer||B.||A new car in 3 years||C.||College in 15 years||D.||A down payment on a house in 4 years|||2) What should you do if you don't want to spend a lot of time managing your investments?||A.||Get out of the game. Successful investing requires time and attention. If you don’t have the time to devote to it, you shouldn’t do it. ||B.||Invest in last year’s best-performing mutual fund.||C.||Invest in an index fund or ETF that tracks the entire stock market. ||D.||Invest in bond funds and other stable-value funds.|||3) When choosing a financial advisor, you should look for one who is…show more content…
||C.||Invest in a sector fund that has been performing well in the current economy.||D.||Stop investing in your 401(k) and invest in index funds in a taxable account.|||7) How should you adjust your retirement saving strategy if you are uncomfortable owning stocks?||A.||Invest a modest amount each month in individual bonds and bond funds.||B.||Plan on saving even more each month than you would if you had invested in stocks--or expect to live on less in retirement.||C.||Plan on retiring at age 80 or later.||D.||Invest in high-yield bonds with maturities of 10 years or more.|||8) What happens to the price of bonds when interest rates go up? ||A.||It goes down ||B.||It goes up.||C.||Nothing. Bond prices are unaffected by fluctuations in interest rates.||D.||It stays the same. Bond prices are determined by the market dynamics of buying and selling.|||9) What one thing can have the biggest impact on a mutual fund's performance over time?||A.||Its expense ratio ||B.||The track record of its manager||C.||The sales load you paid when you bought it ||D.||The amount of money it holds|||10) Which of the following should you look for when evaluating mutual funds?||A.||A small, back-end load||B.||A small front-end load||C.||No load and a low expense ratio||D.||A small front-end load and a low expense ratio|||11) Which of the following is characteristic of an actively managed fund?||A.||It has one or more managers who decide what to buy and sell.
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