Question

1. diversification in investing means: a. putting all your money in one high - performing stock b. investing only in real estate c. spreading your investments across different asset types d. avoiding any risky investments 9. which investment option involves pooling money with others to buy shares in a company’s real estate portfolio? a. real estate direct investment b. mutual fund c. reit d. bond fund 10. which of the following has the highest potential return but also the highest risk? a. treasury bonds b. stocks c. cds d. savings account true or false - 5 points write t for true or f for false. 11. ____ stocks are guaranteed to return a profit over time. 12. __ bonds are considered safer investments than stocks. 13. __ mutual funds are always actively managed by a professional. 14. __ a 401(k) is a retirement account typically offered by employers. 15. ____ reits allow investors to invest in real estate without owning physical property. short answer - 5 points 16. what is one advantage of keeping money in a savings account? 17. explain the concept of “compound interest” in investing.

Explanation:

1. Diversification spreads risk by investing in various assets.
2. REITs pool money for real - estate shares.
3. Stocks have high - return and high - risk potential.
4. Stock returns are not guaranteed.
5. Bonds are generally less volatile than stocks.
6. Mutual funds can be actively or passively managed.
7. 401(k) is an employer - offered retirement plan.
8. REITs enable real - estate investment without property ownership.
9. Savings accounts offer liquidity and safety.
10. Compound interest is interest on principal and accumulated interest.

Answer:

1. C. Spreading your investments across different asset types
2. C. REIT
3. B. Stocks
4. F
5. T
6. F
7. T
8. T
9. One advantage is liquidity (easy access to money).
10. Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods in an investment.