1. What does an S&P 500 index ETF aim to do?
Beat the market using active stock-picking Match the performance of the S&P 500 index as closely as possible Only hold bonds Guarantee a fixed return
2. What is "false diversification"?
Holding assets across many unrelated sectors Holding many assets that are all correlated and tend to move together, like 20 tech stocks Holding only one asset Investing only in bonds
3. What happens to existing bond prices when interest rates rise?
They rise too They typically fall, since new bonds now offer better rates They stay exactly the same Bonds become worthless
4. What is a REIT?
A type of cryptocurrency A company that owns/operates income-producing real estate, with shares traded like a stock A government bond A retail forex account type
5. What best distinguishes a "growth" stock from a "value" stock?
Growth stocks are priced on expected rapid future growth; value stocks appear underpriced relative to current fundamentals There is no real difference Value stocks never pay dividends Growth stocks are always safer