Whilst nearly all American traders have an understanding of the value of diversifying across growth and worth investments, couple are able to attain a passing quality on a test of their knowledge of the variations concerning The 2, As outlined by a new American Century Investments study.
Examination your understanding with the Growth & Value IQ quiz underneath:
one. Which finest describes a expansion inventory?
a) Stock that gives certain amount of progress tied to buyer selling price index.
b) Inventory in a corporation specializing in agriculture, lumber, landscaping, and also other natural and organic solutions.
c) A stock in a corporation demonstrating much better than typical gain and earnings gains.
d) Each of the earlier mentioned.
two. Which finest describes a worth inventory?
a) Inventory in rapidly-rising company specializing in significant-worth, lower-Expense solutions, like a discount retailer.
b) Stock in a company specializing in beneficial items, like valuable metals and jewellery.
c) Inventory that features a low rate-to-guide ratio.
3. Which assertion is true?
a) Worth stocks outperformed advancement shares between 1927 and 2001.
b) Smaller company value stocks outperformed larger sized enterprise value shares in between 1927 and 2001.
c) Protecting a portfolio with a mix of development and value stocks normally is considered a prudent financial investment tactic.
four. For the duration of durations of strong financial growth, which fund generally performs far better?
a) Progress.
b) Benefit.
c) Neither.
d) Both equally.
five. Most of the time, worth cash outpaced progress cash in 2000 and 2001.
a) Accurate.
b) False.
six. Generally speaking, development funds outpaced benefit money over the nineties.
seven. Which type of fund is more most likely to speculate in stocks paying out an important dividend?
8. Larger rate-to-earnings ratios normally 소액결제정책 will be associated with shares in which sort of mutual fund?
9. What kind of stock is described in this example: “Proven baked-products organization with powerful equilibrium sheet and superior income circulation enduring momentary fall in reaction to modifications in senior management.”
10. What sort of inventory is explained in this example: “Software program organization, making the most of continuous gross sales increases, is in the entire process of rolling out an eagerly expected update to a well-liked program software.”
Vital: one(c); two(c); 3(d); 4(a); five(a); six(a); seven(b); eight(a); nine(b); 10(a).