jeopardy -investments (week 5)
DESCRIPTION
Learning Game--MutualsTRANSCRIPT
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Basic InvestmentsCPCU 556 Personal Financial Planning
Donna M. Kesot, CPCU
Donna M. Kesot, CPCU, Copyright 2012 . All Rights Reserved, 4-11-2012
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100 100 100 100
Risks Investing 101
MiscellaneousMutual Funds
400400400
300 300 300
200 200 200200
300
400
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C1 100 Question
The risk that an asset cannot be sold on short notice without incurring a loss
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C1 100 Answer
What is liquidity risk?
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C1 200 Question
Name 4 investment risks
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C1 200 Answer
What are: Inflation risk Financial risk Business risk Exchange Rate risk Interest Rate risk Market risk Specific/unsystematic risk Systematic risk?
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C1 300 Question
Specific risk or unsystematic risk
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C1 300 AnswerWhat risk that arises from features that are unique to a particular risk?
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C1 400 Question
Risk that is common to all securities of the same general class and therefore cannot be eliminated by diversification
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C1 400 AnswerWhat is systematic risk?
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C2 100 Question
Advantages of mutual funds
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C2 100 Answer
What are diversification, professional management, convenience, and ready marketability?
Disadvantages are Cost of Intermediary Expense can vary Selection issue
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C2 200 Question
Mutual Fund Investment Co. Types (3)
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C2 200 Answer
What are1. Face Amount Certificates2. Unit Investment Trusts mutual funds?3. Management Companies?
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For additional 400 points. Are these more or less secure than US Treasury issues?
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C2 300 Question
The market value of a fund share
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C2 300 Answer
What is Net Asset Value (NAV)?
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(Mutual fund net worth) ÷ (# of mutual fund shares outstanding)
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C2 400 Question
Mutual Fund Types
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C2 400 Answer
What are Open-ended Funds Closed-end Funds Load & No-Load Funds?
› Front end loads are funds where the investor pays a fee at purchase but not at redemption
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C3 100 Question
A large investment portfolio comprising many different securities—either stocks, bonds, or both—in addition to other investments
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C3 100 Answer
What is a mutual fund?
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C3 200 Question
Index Fund
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C3 200 Answer
A mutual that tracks the market rather than trying to outperform the market
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C3 300 Question
The practice of using borrowed money to invest
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C3 300 Answer
What is leverage?
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C3 400 Question
Steps of an Investment Plan
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C3 400 Answer
What are 1. Determine investment goals2. Estimate savings requirements and set priorities3. Determine acceptable level of investment risk4. ID investment alternatives5. Select the appropriate investment approach6. Monitor & review the investment plan?
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C4 100 Question
The profit a securities or capital investment usually, an annual percentage rate
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C4 100 Answer
What is an investment return?
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C4 200 Question
Exchange Traded Fund
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C4 200 Answer
What is a fund purchases assets and sells shares like a mutual but which can be traded like a stock because the shares represent proportional ownership
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C4 300 Question
Two Acts which regulates investment companies
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C4 300 AnswerWhat are:Sale of shares1. Securities Act of 1933 2. Securities Exchange Ac t of 1934
Operations Company Act of 1940 (operations Investors Advisement Act of 1940
HomeDaily Double = 600 points What does SEC stand for?
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C4 400 Question
Two ways to measure administrative performance of funds
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C4 400 Answer
What are expense ratio and income ratio?
E/R = Total operating expenses ÷fund net assets I/R= Total operating expenses ÷ Fund Incomes Total operating expenses includes management
fees and expenses
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