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Goal Setting
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1. Diversifying means . . .

A. Spreading your money among several investments.
B. Investing all your money in one type of investment.
C. Using the services of several different stock brokers.
D. Putting your money in bank accounts at different institutions.

2. When investing in stocks, the most important thing to consider is . . .

A. Which stocks you are investing in.
B. How much risk you are willing to assume
C. Who you enlist as your stock broker
D. What the market is doing now.

3. Which of the following is true about stocks?

A. Over the long term, stocks outperform other financial assets.
B. The short-term performance of stocks is not consistent.
C. The long-term performance of stocks is quite consistent.
D. All of the above.

4. A savings account is considered

A. A low risk investment.
B. A high payout investment.
C. A high risk investment.
D. A good way to invest large sums of money and receive a high rate of return.

5. Certificates of Deposit (CD's) and treasury bills or notes . . .

A. Are a high risk investment.
B. Earn one of the highest returns on savings (APY) with little or no risk.
C. Are a high payout investment.
D. Earn low returns on savings with little or no risk.