Principles of Investment Answers

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1
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Which investment practice is Cody following?

A
buying commodities
B
short-term investing
C
diversifying investments
2
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One reason why individuals focus on long-term investments is to .

A
pay for immediate expenses
B
save for their retirement
C
grow money quickly
3

Which step should Cody take to improve his investment portfolio?

A
sell the failing stock
B
try to take more risks
C
be more conservative
6

Which investment shortcoming has he failed to avoid?

A
focusing on sunk costs
B
focusing on the familiar
C
not knowing his personality
8

Investments with more liquidity include .

A
real estate
B
retirement plans
C
savings accounts
9

Investments with less liquidity include .

A
checking accounts
B
personal property
C
mutual funds

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Principles of Investment Answers — OC27…